Prodnalog ( rus, продналог, p=prədnɐˈlok, from продовольственный налог, ''prodovolstvenniy nalog''; "food tax";) is the

Russian Russian(s) may refer to: *Russians (), an ethnic group of the East Slavic peoples, primarily living in Russia and neighboring countries *A citizen of Russia *Russian language, the most widely spoken of the Slavic languages *''The Russians'', a b ...

word for a

tax A tax is a mandatory financial charge or levy imposed on an individual or legal entity by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax co ...

on food production, paid in kind in the

Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

, and sometimes known as "the tax in kind". ''Prodnalog'' replaced ''

prodrazvyorstka ''Prodrazverstka'', also transliteration of Russian, transliterated ''prodrazvyorstka'' ( rus, продразвёрстка, p=prədrɐˈzvʲɵrstkə, short for , ), alternatively referred to in English as grain requisitioning, was a policy and ...

'' (introduced in 1919) and was introduced by a

Decree A decree is a law, legal proclamation, usually issued by a head of state, judge, monarch, royal figure, or other relevant Authority, authorities, according to certain procedures. These procedures are usually defined by the constitution, Legislativ ...

of the

All-Russian Central Executive Committee The All-Russian Central Executive Committee () was (June – November 1917) a permanent body formed by the First All-Russian Congress of Soviets of Workers' and Soldiers' Deputies (held from June 16 to July 7, 1917 in Petrograd), then became the ...

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. It was abolished in 1923 with the introduction of the unified .

History

The transition to prodnalog was the first act of the

New Economic Policy The New Economic Policy (NEP) () was an economic policy of the Soviet Union proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, ...

and a necessary incentive for increasing

Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

agricultural Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created f ...

production . The

peasant A peasant is a pre-industrial agricultural laborer or a farmer with limited land-ownership, especially one living in the Middle Ages under feudalism and paying rent, tax, fees, or services to a landlord. In Europe, three classes of peasan ...

s knew in advance how much produce they would have to surrender to the state. The rate of prodnalog was much smaller than

. For comparison, in 1920-1921 the peasants surrendered to the state 367 million '' poods'' (6,010,000

metric tons The tonne ( or ; symbol: t) is a unit of mass equal to 1,000 kilograms. It is a non-SI unit accepted for use with SI. It is also referred to as a metric ton in the United States to distinguish it from the non-metric units of the sh ...

) of

cereal A cereal is a grass cultivated for its edible grain. Cereals are the world's largest crops, and are therefore staple foods. They include rice, wheat, rye, oats, barley, millet, and maize ( Corn). Edible grains from other plant families, ...

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 is a baked food product made from water, flour, and often yeast. It is a staple food across the world, particularly in Europe and the Middle East. Throughout recorded history and around the world, it has been an important part of many cu ...

and other products remained at peasant

household A household consists of one or more persons who live in the same dwelling. It may be of a single family or another type of person group. The household is the basic unit of analysis in many social, microeconomic and government models, and is im ...

s' disposal, which provided an incentive for peasants to develop their own household

economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

, widen the sowing areas, increase the total number of

livestock Livestock are the Domestication, domesticated animals that are raised in an Agriculture, agricultural setting to provide labour and produce diversified products for consumption such as meat, Egg as food, eggs, milk, fur, leather, and wool. The t ...

and

productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proce ...

crops A crop is a plant that can be grown and harvested extensively for profit or subsistence. In other words, a crop is a plant or plant product that is grown for a specific purpose such as food, fibre, or fuel. When plants of the same species a ...

. 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 ( ; rus, кула́к, r=kulák, p=kʊˈɫak, a=Ru-кулак.ogg; plural: кулаки́, ''kulakí'', 'fist' or 'tight-fisted'), also kurkul () or golchomag (, plural: ), was the term which was used to describe peasants who owned over ...

households. In March and April 1921, a number of Soviet Decrees introduced a natural tax on bread,

potato The potato () is a starchy tuberous vegetable native to the Americas that is consumed as a staple food in many parts of the world. Potatoes are underground stem tubers of the plant ''Solanum tuberosum'', a perennial in the nightshade famil ...

, oilseeds, eggs,

dairy products Dairy products or milk products are food products made from (or containing) milk. The most common dairy animals are cow, water buffalo, goat, nanny goat, and Sheep, ewe. Dairy products include common grocery store food around the world such as y ...

wool Wool is the textile fiber obtained from sheep and other mammals, especially goats, rabbits, and camelids. The term may also refer to inorganic materials, such as mineral wool and glass wool, that have some properties similar to animal w ...

, hides,

flax Flax, also known as common flax or linseed, is a flowering plant, ''Linum usitatissimum'', in the family Linaceae. It is cultivated as a food and fiber crop in regions of the world with temperate climates. In 2022, France produced 75% of t ...

and

hemp Hemp, or industrial hemp, is a plant in the botanical class of ''Cannabis sativa'' cultivars grown specifically for industrial and consumable use. It can be used to make a wide range of products. Along with bamboo, hemp is among the fastest ...

linen,

tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...

etc. The collection of agricultural goods in excess of prodnalog, if necessary, was intended to be made on a

barter In trade, barter (derived from ''bareter'') is a system of exchange (economics), exchange in which participants in a financial transaction, transaction directly exchange good (economics), goods or service (economics), services for other goods ...

basis by giving peasants manufactured goods. In order to accelerate the expansion of

commodity In economics, a commodity is an economic goods, good, usually a resource, that specifically has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to w ...

circulation, create necessary conditions for developing

farming Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created ...

and

industry Industry may refer to: Economics * Industry (economics), a generally categorized branch of economic activity * Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery * The wider industrial sector ...

and speed up the productive forces of the country, the government encouraged small-scale production all over

. 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 The Council of People's Commissars (CPC) (), commonly known as the ''Sovnarkom'' (), were the highest executive authorities of the Russian Soviet Federative Socialist Republic (RSFSR), the Soviet Union (USSR), and the Soviet republics from 1917 ...

on May 10, 1923). The latter would be collected in

monetary Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: med ...

form starting in 1924, with the establishment of

hard currency In macroeconomics, hard currency, safe-haven currency, or strong currency is any globally traded currency that serves as a reliable and stable store of value. Factors contributing to a currency's ''hard'' status might include the stability and ...

in the

USSR The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

. However bad harvests combined with the increased needs for hard currency to support industrialization in the

industrialization Industrialisation (British English, UK) American and British English spelling differences, or industrialization (American English, US) is the period of social and economic change that transforms a human group from an agrarian society into an i ...

had led to grain procurement crises.

Stalin Joseph Vissarionovich Stalin (born Dzhugashvili; 5 March 1953) was a Soviet politician and revolutionary who led the Soviet Union from 1924 until Death and state funeral of Joseph Stalin, his death in 1953. He held power as General Secret ...

blamed

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.Vladimir Kuznetsov
ОТ ПРОДРАЗВЕРСТКИ К ПРОДНАЛОГУ
book chapter from ''Земля Рубцовская: События. Факты. Люди'', 1999

References

{{reflist Soviet phraseology Taxation in the Soviet Union 1921 establishments in Russia Abolished taxes

History

See also

References