NDA2019General AbilityGeneral StudiesActual
Which one of the following statements is not true about Ijarah system?
Options
- AIt was a system of revenue farming
- BIt encouraged the role of middlemen
- CUnder this system, land revenue was fixed for the peasant
- 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.