LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
TAXES-EFFECTS
Taxes have important economic effects on income,price and enterprises. Because taxes involve compulsory payments,these have significant effects on behavior of individuals in production and consumption process. The four major economic effects of taxation are
a) Reduction of incomes:A proportional tax does not affect income distribution,because it falls equally on all sections of society . Progressive taxes impose greater burden on the richer sections than on poor. Therefore these taxes redistribute income in favour of poor. Taxes which are regressive impose relatively greater burden on poorer sections as compared to richer section. Therefore, these worsen the income inequalities.
b)Raising of prices :Indirect taxes are added to the prices of commodities by sellers and are fully charged from the consumers. Whenever excise duties on commodities are raised ,their prices go up. It fans the fires of inflationary and worsen the inflationary situation with time in two ways via increased prices of all manufacturers and via increased wage demand from workers owing to higher cost of living.
c)Reduction of incentives to work :Heavy taxation of income and wealth reduce incentives to work hard. Heavy taxation on different forms of wealth adversely affects the incentive to work. People want to save and have property. They want to work harder to obtain it .
d)Adverse effect on risk taking :Heavy rates of profit taxation of companies discourage entrepreneurs from undertaking risky investment. Greater the amount of risk involved in an investment project ,higher must be promise of profit therefrom if it is to be undertaken.
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