Back in 1961, prominent economists such as Yogendra Alag were making a case for taxing agricultural income. The likes of Kerala, Assam and UP dabbled with this matter, but eventually withdrew it claiming that it didn't work quite as well. Over 86% of agricultural households hold less than two hectares of land. But to extend a blanket tax regime on all agricultural income would require extraordinary political will.
In today’s episode for 2nd February 2023, we explain the history of taxing agricultural income and why it’s such a contentious issue.