With the removal of the tsar and the formation of a government, the communist government faced many problems: a growing army demanding food, a decrease in jobs, an impending famine. In order to establish themselves in their positions and prevent economic chaos, as well as public outrage, the authorities decide on reforms that should strengthen their policies.
Prodrazvyorzka or tax in kind?
This was a question that was discussed by the party leadership in the early 20s. Having set a course for the industrialization and electrification of Russia, Lenin was not ready to abandon such a tempting plan. But the more forces were thrown into the construction of industry, the fewer people were engaged in agriculture.
The growing army demanded bread, which prompted the new government to carry out a series of reforms that were supposed to provide the required grain rate. For example, the introduction of surplus appropriation - the forced selection of crops from peasants. However, the fact that most of the fields used earlier was abandoned was not taken into account, and more often the peasants simply did notenough seeds to sow.
Strict norms were set for the delivery of products at a price convenient for the state, which led to a food dictatorship and the impoverishment of farmers. The so-called grain monopoly forced the whole crop to be handed over to the bins of the motherland, leaving a small amount required for the survival of households.
If initially the surplus appropriation "sucked out" all stocks of grain, then by the end of 1920, the rates of delivery appeared for other products (meat, potatoes, etc.). The dissatisfaction caused by such a cruel consumer attitude could soon result in peasant armed uprisings.
At the Tenth Party Congress, it was decided to soften the measures and introduce new, loyal methods that contribute to the revival of agriculture. A tax in kind and several other accompanying measures were introduced. They reduced the burden on agriculture and strengthened the country's economic market.
Formulation
The meaning of the word "tax in kind" becomes clear if we take into account that it comes from two words - "food" and "tax". Thus, this abbreviation explains the meaning of the term, that is, we are talking about a tax in kind, which was levied on peasants in the USSR until 1923.
Soft method
What does the food tax mean for the population? The norms that the peasants had to give to the treasury had clear boundaries, since the number of eaters, sown land, and livestock was taken into account. It can be noted that the introduction of a tax in kindhad its results.
In the first year, the established norms were collected in the amount of two hundred and forty million poods of grain, which was much less than during the surplus, but not critical for the country's economy. The exception was the kulaks, who had more prosperous farmsteads. They were taxed higher than other peasants.
Value of food tax
With the entry into force of the new decree, the Russian economy began to gradually emerge from the crisis. Market relations began to revive. Surplus products that remained after mandatory payments, the population could sell, and not exchange, as it was before.
This turn of events gave impetus to the monetary reform and the emergence of a stable currency. And the lifting of the moratorium on the work of small private enterprises, returned to many the opportunity to continue to run their business.
By allowing trade within the country, as well as by denationalizing certain sectors of industry, Lenin stabilized the economy at the expense of the population's own funds, without resorting to coercive methods.
Thus, it can be noted that the tax in kind is not just a fixed tax, but a well-thought-out plan for a new economic policy. Contributing to the formation of the domestic market of the country, the authorities contributed to the creation of a turnover between the producer and the consumer, thereby increasing the turnover of large enterprises.
People who previously did not work were forced to serve forced laborduty. There were also organizations involved in the employment of the population.
Despite the efforts made, the new economic policy did not manage to completely correct the economy of the state. Thanks to the tax in kind, the agricultural sector gained importance. People hurrying to a bright communist future demanded active actions, the consequence of which would be quick visible results.
In view of the current situation in May 1921, Lenin said that the tax in kind is a fairly acceptable policy for a state that keeps pace with the times. Prior to this, the rise in prices for manufactured goods and the reduction in the cost of natural production made the inhabitants of the country grumble. But the introduction of fixed norms for the delivery of agricultural products calmed the population.
Thanks to these changes, the recovery of the country's economy began. And the in kind tax and the development of the industrial sector served as an impetus for this.
