# Prodnalog

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{{Short description|Food tax}}
{{refimprove|date=December 2009}}
thumb|"The Food Tax is the Flywheel of the State Mechanism"
'''Prodnalog''' ({{lang-rus|продналог|p=prədnɐˈlok}}, [from](/source/syllabic_abbreviation) '''прод'''овольственный '''налог''', '''''prod'''ovolstvenniy '''nalog'''''; {{literally}} '''"food tax"''';) is the [Russian](/source/Russian_language) word for a [tax](/source/taxation) on food production, [paid in kind](/source/barter) in the [Soviet Union](/source/Soviet_Union), and sometimes known as "'''the tax in kind'''". ''Prodnalog'' replaced ''[prodrazvyorstka](/source/prodrazvyorstka)'' (introduced in 1919) and was introduced by a [Decree](/source/Soviet_Decrees) of the [All-Russian Central Executive Committee](/source/All-Russian_Central_Executive_Committee) on March 21, 1921. Separate decrees were issued for taxes on particular categories of produce: bread, milk, eggs, meat, oil, etc., as well as on hay, wool, and tobacco. After paying the tax, the peasants were allowed to trade the surplus.<ref>[https://ia601304.us.archive.org/9/items/kratkispravochn00komigoog/kratkispravochn00komigoog.pdf Краткий справочник продработника Моск. губ] (Brief Reference for Food Workers of the Moscow Governorate), 1921 (Includes the texts of the corresponding decrees)</ref> It was abolished in 1923 with the introduction of the unified {{ill|agricultural tax|ru|Сельскохозяйственный налог (СССР)}}.<ref>[https://bigenc.ru/c/prodnalog-ef3e24 Продналог], ''Great Russian Encyclopedia''</ref>

==History==

The transition to prodnalog was the first act of the [New Economic Policy](/source/New_Economic_Policy) and a necessary incentive for increasing [Soviet](/source/Soviet_Union) [agricultural](/source/agricultural) production . The [peasant](/source/peasant)s knew in advance how much produce they would have to surrender to the state. The [rate](/source/Tax_rate) of prodnalog was much smaller than [prodrazvyorstka](/source/prodrazvyorstka). For comparison, in 1920-1921 the peasants surrendered to the state 367 million ''[pood](/source/pood)s'' (6,010,000 [metric tons](/source/tonne)) of [cereal](/source/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](/source/bread) and other products remained at peasant [household](/source/household)s' disposal, which provided an incentive for peasants to develop their own household [economy](/source/economy), widen the sowing areas, increase the total number of [livestock](/source/livestock) and [productivity](/source/productivity) of [crops](/source/agriculture). 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](/source/progressive_taxation); the highest rate of prodnalog had to be paid by the [kulak](/source/kulak) households.

In March and April 1921, a number of [Soviet Decrees](/source/Soviet_Decrees) introduced a natural tax on bread, [potato](/source/potato), oilseeds, [eggs](/source/egg_(food)), [dairy products](/source/dairy_products), [wool](/source/wool), [hides](/source/Hide_(skin)), [flax](/source/flax) and [hemp](/source/Industrial_hemp) linen, [tobacco](/source/tobacco) etc. The collection of agricultural goods in excess of prodnalog, if necessary, was intended to be made on a [barter](/source/barter) basis by giving peasants manufactured goods. In order to accelerate the expansion of [commodity](/source/commodity) circulation, create necessary conditions for developing [farming](/source/farming) and [industry](/source/Industrial_sector) and speed up the productive forces of the country, the government encouraged small-scale production all over  [Soviet Union](/source/Russian_Soviet_Federative_Socialist_Republic). 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](/source/12th_Congress_of_the_RCP(b)) of the [RCP(b)](/source/CPSU) (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](/source/Sovnarkom) on May 10, 1923). The latter would be collected in [monetary](/source/monetary) form starting in 1924, with the establishment of [hard currency](/source/hard_currency) in the [USSR](/source/USSR).

However bad harvests combined with the increased needs for hard currency to support the [industrialization](/source/Soviet_Union) had led to grain procurement crises. [Stalin](/source/Stalin) blamed [kulak](/source/kulak)s for the crisis, and in 1928 extraordinary measures were introduced, including grain confiscation. This crisis was an additional motive for Stalin's [forced collectivization](/source/Collectivization_in_the_Soviet_Union).<ref>Vladimir Kuznetsov, [https://www.rubtsovsk.ru/history/ruarea01/010.htm ОТ ПРОДРАЗВЕРСТКИ К ПРОДНАЛОГУ], book chapter from ''Земля Рубцовская: События. Факты. Люди'', 1999</ref>

==See also==
*[Ural-Siberian method](/source/Ural-Siberian_method) of grain procurement

==References==
{{reflist}}
Category:Soviet phraseology
Category:Taxation in the Soviet Union
Category:1921 establishments in Russia
Category:Abolished taxes

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Adapted from the Wikipedia article [Prodnalog](https://en.wikipedia.org/wiki/Prodnalog) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Prodnalog?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.
