These estimates, along with available empirical research, will be used to determine whether the farm sector is undertaxed vis-a-vis non-agriculture and, even more importantly, whether income classes in the agricultural sector are undertaxed compared to income classes in the non-farm sector.
6], 27 percent of all indirect taxes are borne by the agricultural sector.
Accordingly, land revenue and its various surcharges are assigned to the agricultural sector and the personal income tax to the non-agricultural sector.
Whereas the data show a declining trend in the proportion of income paid out in direct taxes in both the sectors, the fall in the ratio was especially dramatic for the agricultural sector.
and subscripts a and n refer to the agricultural sector and the non-agricultural sector respectively.
The direct findings of this study indicate that the agricultural sector bears a greater tax burden than is required for achieving intersectoral equity.