The National Farmers' Union has warned that by imposing land tax on agricultural land Labour 'would simply increase the cost of UK food production with no benefit for shoppers'.
Land value taxes are paid by landowners on the unimproved rental value of their land.
Labour's manifesto, ahead of the June 8 election, pledges "a review into reforming council tax and business rates and consider new options such as a land value tax, to ensure local government has sustainable funding for the long term."
Concerns were raised after analysis of the plans, dubbed the garden tax, would eventually will be based on three per cent of the value of land for each property.
However, a Labour spokesman dismissed the claims as "desperate nonsense from the Tories". The manifesto contains no details about how the tax would be applied.
'No benefit to shoppers'
The NFU has warned that the new Countryside Tax "would simply increase the cost of UK food production with no benefit for shoppers."
All-Party Gardening and Horticulture Group secretary Rebecca Pow MP said: "Looking at this at face value, I would urge caution with any policy which might deter people from wanting gardens.
"It is well documented that taking part in gardening activities and having access to green space are hugely beneficial to health and well being.
"I would also be concerned that this kind of a policy would target rural areas far more than urban areas, putting an additional strain on peoples pockets, accentuating the urban/rural divide.
"It is right that those who have worked hard to achieve a home with a garden are not then penalised for it and are treated fairly."
The Institute for Public Policy Research says the tax might become a "tax on gardens".
