An arrangement wherein land revenue is fixed perpetually. This system entails that the amount of tax levied remains constant over time, irrespective of productivity or other economic factors. A notable instance of this can be found in historical land revenue systems where a fixed tax was imposed on landowners, intended to provide a predictable income stream for the governing authority.
The advantages of such an established fiscal strategy lie in its stability and predictability. It allowed governments to forecast revenue with considerable accuracy, facilitating long-term planning and resource allocation. Furthermore, it incentivized landowners to invest in and improve their land, knowing that increased productivity would not result in higher taxes. However, potential drawbacks included the inability to adjust revenue in response to inflation or changing economic conditions, potentially leading to financial constraints for the governing body over time.