[Between February 24 and March 3, 1921]

1. For the purpose of precisely establishing the state obligations falling upon the farmers, strengthening the peasant economy and raising its productivity, the surplus-appropriation system, as a method of state procurements of foodstuffs, raw materials and fodder, is replaced by a tax in kind.

2. The tax is levied in the form of a percentage or other deduction from the total output of products on the farm, based on the accounting of the harvest, the number of eaters in the household and the actual livestock on it.

3. The tax must be progressive in the sense of lowering the percentage of deduction for low-income farms, for households of urban workers, etc.

4. The percentage of assessment on grain crops and potatoes (converted into grain) progressively decreases as the yield of these products per capita in the household declines.

The same principle of assessment is applied when collecting the tax in milk products and wool.

Progressive assessment also applies to vegetable crops on areas exceeding a certain minimum plot.

5. Progressive assessment is not applied when collecting the tax on:
meat (of all kinds), hides (of all kinds), eggs, dressed poultry and small raw materials of animal origin, as well as sunflower seeds and other oil-bearing plants and field-grown sugar beet.

Likewise, progressive assessment is not applied to flax, hemp, cotton and similar industrial crops, the tax on which is levied on the basis of the decrees of November 12, 1920, December 2, 1920, November 27, 1920, and the decree on the commodity fund for remunerating flax and hemp growers.