Prodnalog
Encyclopedia
Prodnalog or Продналог is the Russian
word for a tax on food production, paid in kind in Soviet Russia
, and sometimes known as "the Tax in Kind". Prodnalog, which replaced prodrazvyorstka
, was introduced by a Decree
of the All-Russian Central Executive Committee
on March 21, 1921 and was abolished in 1924.
The transition to prodnalog was the first act of the New Economic Policy
and a necessary incentive for raising the Soviet agriculture
. The peasant
s knew in advance how much produce they would have to surrender to the state. The rate
of prodnalog was much smaller than that of prodrazvyorstka. For comparison, in 1920-1921 the peasants surrendered to the state 367 million pood
s (6,010,000 metric tons
) of cereal
s through prodrazvyorstka, as opposed to 240 million poods (3,930,000 metric tons) in 1921-1922 through prodnalog.
During the first year of introduction of prodnalog, a significant amount of bread
and other products remained at peasant household
s' disposal, which provided an incentive for peasants to develop their own household economy
, widen the sowing areas, increase the total number of livestock
and productivity
of crops
. The rate of prodnalog on each kind of agricultural product was determined depending on local conditions and prosperity of a given peasant household. The Soviet state adhered to a policy of progressive taxation; the highest rate of prodnalog had to be paid by the kulak
households.
In March and April 1921, a number of Soviet Decrees
introduced a natural tax on bread, potato
, oilseeds, eggs
, dairy products, wool
, hides
, flax
and hemp linen, tobacco
etc. The collection of agricultural goods in excess of prodnalog, if necessary, was intended to be made on a barter
basis by giving peasants manufactured goods. In order to accelerate the expansion of commodity
circulation, create necessary conditions for developing farming and industry
and speed up the productive forces of the country, the government encouraged small-scale production all over the Soviet Russia
. The introduction of prodnalog revived the trade and created a different kind of relations between the city and the village.
By the decision of the 12th Congress of the RCP(b) (April 1923), prodnalog and other taxes in the rural areas were exchanged for a universal direct agricultural tax (decree of the All-Russian Central Executive Committee and Sovnarkom on May 10, 1923). The latter would be collected in monetary form starting in 1924, with the establishment of hard currency
in the USSR.
Russian language
Russian is a Slavic language used primarily in Russia, Belarus, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan. It is an unofficial but widely spoken language in Ukraine, Moldova, Latvia, Turkmenistan and Estonia and, to a lesser extent, the other countries that were once constituent republics...
word for a tax on food production, paid in kind in Soviet Russia
Russian Soviet Federative Socialist Republic
The Russian Soviet Federative Socialist Republic , commonly referred to as Soviet Russia, Bolshevik Russia, or simply Russia, was the largest, most populous and economically developed republic in the former Soviet Union....
, and sometimes known as "the Tax in Kind". Prodnalog, which replaced prodrazvyorstka
Prodrazvyorstka
Prodrazvyorstka , translated as food apportionment or surplus appropriation system, was a governmental program in Russia which obliged peasantry to surrender the surpluses of almost any kind of agricultural produce for a fixed price...
, was introduced by a Decree
Soviet Decrees
Decrees were legislative acts of the highest Soviet institutions, primarily of the Council of People's Commissars and of the Supreme Soviet or VTsIK , issued between 1917 and 1924...
of the All-Russian Central Executive Committee
All-Russian Central Executive Committee
All-Russian Central Executive Committee , was the highest legislative, administrative, and revising body of the Russian Soviet Federative Socialist Republic. Although the All-Russian Congress of Soviets had supreme authority, in periods between its sessions its powers were passed to VTsIK...
on March 21, 1921 and was abolished in 1924.
The transition to prodnalog was the first act of the New Economic Policy
New Economic Policy
The New Economic Policy was an economic policy proposed by Vladimir Lenin, who called it state capitalism. Allowing some private ventures, the NEP allowed small animal businesses or smoke shops, for instance, to reopen for private profit while the state continued to control banks, foreign trade,...
and a necessary incentive for raising the Soviet agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. The peasant
Peasant
A peasant is an agricultural worker who generally tend to be poor and homeless-Etymology:The word is derived from 15th century French païsant meaning one from the pays, or countryside, ultimately from the Latin pagus, or outlying administrative district.- Position in society :Peasants typically...
s knew in advance how much produce they would have to surrender to the state. The rate
Rate
In mathematics, a rate is a ratio between two measurements, often with different units. If the unit or quantity in respect of which something is changing is not specified, usually the rate is per unit time. However, a rate of change can be specified per unit time, or per unit of length or mass or...
of prodnalog was much smaller than that of prodrazvyorstka. For comparison, in 1920-1921 the peasants surrendered to the state 367 million pood
Pood
Pood , is a unit of mass equal to 40 funt . It is approximately 16.38 kilograms . It was used in Russia, Belarus and Ukraine. Pood was first mentioned in a number of documents of the 12th century....
s (6,010,000 metric tons
Tonne
The tonne, known as the metric ton in the US , often put pleonastically as "metric tonne" to avoid confusion with ton, is a metric system unit of mass equal to 1000 kilograms. The tonne is not an International System of Units unit, but is accepted for use with the SI...
) of cereal
Cereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
s through prodrazvyorstka, as opposed to 240 million poods (3,930,000 metric tons) in 1921-1922 through prodnalog.
During the first year of introduction of prodnalog, a significant amount of bread
Bread
Bread is a staple food prepared by cooking a dough of flour and water and often additional ingredients. Doughs are usually baked, but in some cuisines breads are steamed , fried , or baked on an unoiled frying pan . It may be leavened or unleavened...
and other products remained at peasant household
Household
The household is "the basic residential unit in which economic production, consumption, inheritance, child rearing, and shelter are organized and carried out"; [the household] "may or may not be synonymous with family"....
s' disposal, which provided an incentive for peasants to develop their own household economy
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...
, widen the sowing areas, increase the total number of livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
and productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...
of crops
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. The rate of prodnalog on each kind of agricultural product was determined depending on local conditions and prosperity of a given peasant household. The Soviet state adhered to a policy of progressive taxation; the highest rate of prodnalog had to be paid by the kulak
Kulak
Kulaks were a category of relatively affluent peasants in the later Russian Empire, Soviet Russia, and early Soviet Union...
households.
In March and April 1921, a number of Soviet Decrees
Soviet Decrees
Decrees were legislative acts of the highest Soviet institutions, primarily of the Council of People's Commissars and of the Supreme Soviet or VTsIK , issued between 1917 and 1924...
introduced a natural tax on bread, potato
Potato
The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family . The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species...
, oilseeds, eggs
Egg (food)
Eggs are laid by females of many different species, including birds, reptiles, amphibians, and fish, and have probably been eaten by mankind for millennia. Bird and reptile eggs consist of a protective eggshell, albumen , and vitellus , contained within various thin membranes...
, dairy products, wool
Wool
Wool is the textile fiber obtained from sheep and certain other animals, including cashmere from goats, mohair from goats, qiviut from muskoxen, vicuña, alpaca, camel from animals in the camel family, and angora from rabbits....
, hides
Hides
A hide is an animal skin treated for human use. Hides include leather from cattle and other livestock animals, alligator skins, snake skins for shoes and fashion accessories and furs from wild cats, mink and bears. In some areas, leather is produced on a domestic or small industrial scale, but most...
, flax
Flax
Flax is a member of the genus Linum in the family Linaceae. It is native to the region extending from the eastern Mediterranean to India and was probably first domesticated in the Fertile Crescent...
and hemp linen, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
etc. The collection of agricultural goods in excess of prodnalog, if necessary, was intended to be made on a barter
Barter
Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
basis by giving peasants manufactured goods. In order to accelerate the expansion of commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
circulation, create necessary conditions for developing farming and industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
and speed up the productive forces of the country, the government encouraged small-scale production all over the Soviet Russia
Russian Soviet Federative Socialist Republic
The Russian Soviet Federative Socialist Republic , commonly referred to as Soviet Russia, Bolshevik Russia, or simply Russia, was the largest, most populous and economically developed republic in the former Soviet Union....
. The introduction of prodnalog revived the trade and created a different kind of relations between the city and the village.
By the decision of the 12th Congress of the RCP(b) (April 1923), prodnalog and other taxes in the rural areas were exchanged for a universal direct agricultural tax (decree of the All-Russian Central Executive Committee and Sovnarkom on May 10, 1923). The latter would be collected in monetary form starting in 1924, with the establishment of hard currency
Hard currency
Hard currency , in economics, refers to a globally traded currency that is expected to serve as a reliable and stable store of value...
in the USSR.