Dr Ambedkar emphasized the necessity of changing the attitude towards the taxes. Therefore, he suggested taking immediate efforts to rectify the inequalities in the general system of taxation. Particularly he had the great objections to the then prevailing system of levying land revenue. While participating in the debate in the Bombay legislative council, he said that, the tax system of the Bombay presidency was inequitable and hence indefensible.
According to him the land revenue, whatever may be the play of words whether it was tax or whether it is rent, there was no doubt that, land revenue was a tax on the profits of the businessman and therefore, there should not be difference in the methods of levying the tax on the income from agriculture and business.
But in the case of land revenue every farmer, whatever may be his income was brought under the levy of land tax, while under income tax no person is called upon to pay the tax, if he had not earned income during the year. Such system was not made applicable to the land revenue. Whether there is a failure of crops or abundance of crops the poor agriculturist was called upon to pay the revenue. Further, the income tax is levied on the recognized principle of ability to pay..