Prodnalog, which replaced prodrazvyorstka, was introduced by a Decree of the All-Russian Central Executive Committee on March 21, 1921 and was abolished in 1924.
During the first year of introduction of prodnalog, a significant amount of bread and other products remained at peasant households' disposal, which provided an incentive for peasants to develop their own household economy, widen the sowing areas, increase the total number of livestock and productivity of crops.
The rate of prodnalog on each kind of agricultural product was determined depending on local conditions and prosperity of a given peasant household.
The Soviet state adhered to a policy of progressive taxation; the highest rate of prodnalog had to be paid by the kulak households.
In March and April 1921, a number of Soviet Decrees introduced a natural tax on bread, potato, oilseeds, eggs, dairy products, wool, hides, flax and hemp linen, tobacco etc.