Public Administration in Ancient India c16.2

c16.2

The income of the State was derived from various sources. In very early times, the burden of taxation was extremely light. But as the duties of the State increased, the burden became progressively heavier. Gautama, one of the early law-givers, says: “Cultivators must pay to the King a tax (amounting to) one-tenth, one-eighth, or one-sixth (of the produce).¹ Some declare that (there is a tax) also on cattle and gold, (viz.) one-fiftieth. In the case of merchandise one-twentieth was the duty, and of roots, fruits, flowers, medicinal herbs, honey, meat, grass, and firewood, one-sixtieth.”² In the time of Vishnu, who perhaps wrote about two centuries later, the rates of taxation were appreciably higher,—namely, a sixth part of every kind of crops and of meat, fruits, and flowers, a duty of 2 per cent. levied on cattle, gold, and cloths, of 10 per cent. on goods locally manufactured, and of 5 per cent. on articles imported from abroad.³ Manu mentions even higher rates, except as regards the land, and also gives a longer list of articles on which taxes were to be levied. He says: “A fiftieth part of the (increments on) cattle and gold may be taken by the King, and the eighth, sixth, or twelfth part of the crops. He may also take the sixth part of trees, meat, honey, clarified butter, perfumes, (medicinal) herbs, substances used for flavouring food, flowers, roots, and fruits; of leaves, pot-herbs, grass, (objects) made of cane, skins, of earthen vessels, and all (articles) made of stone.”⁴ The Mahābhārata describes the tax-system in very general terms. It says: “With a sixth part, upon a fair calculation, of the yield of the soil, with fines and forfeitures from offenders, with the imposts levied according to the Sāstras upon merchants and trades in return for the protection granted to them, a King should fill his treasury.”¹