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NDA2019General AbilityGeneral StudiesActual

Which one of the following statements is not true about Ijarah system?

Options

  1. AIt was a system of revenue farming
  2. BIt encouraged the role of middlemen
  3. CUnder this system, land revenue was fixed for the peasant
  4. DThe ijaradar paid a fixed amount to the State treasury

Correct answer

C. Under this system, land revenue was fixed for the peasant

Step-by-step solution

Izara is system in which tax collection authority given by bidding process and highest bidder chosen. So, izaredar essentially are a kind of contractor. It helps to improve revenue. Under this system the government gave the right to collect tax revenue on production to a third party (middle man) and in return got an assured sum from the third party. The third party could levy any percentage of tax on the people.

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