Analysis demonstrates effects of land taxation on agricultural productivity among smallholder farmers, suggesting reforms for sustainability.
Agricultural productivity in the Ethiopian Highlands is significantly influenced by taxation policies on land. However, there is a need to understand how these policies affect smallholder farmers and their productivity. Qualitative data collection techniques such as semi-structured interviews, focus group discussions, and document reviews will be employed to gather insights from stakeholders involved in farming activities. The analysis revealed a positive correlation between moderate tax rates on land and increased agricultural yields among smallholder farmers, indicating that taxation can encourage sustainable farming practices. This study provides empirical evidence supporting the potential benefits of appropriately structured land taxation policies for enhancing agricultural productivity in the Ethiopian Highlands. Policy makers should consider implementing a tiered tax system to ensure equitable treatment and incentivize smallholder farmers towards improved productivity and sustainability.
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Abera et al. (2002) studied this question.
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