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Hindu Administrative Institutions c9.s2: Sec. ii. Principles of Taxation

Hindu Administrative Institutions c9.s2

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Sec. ii. Principles of Taxation

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That taxes were just, equitable, and reasonable is borne out by a number of literary and epigraphic evidence. It is said that a king should not have recourse to *adharmic* methods; nor should he be impelled by greed or covetousness. In either case the king’s position will become intolerable. Unrighteous tax-gatherers are compared to greedy milkmen who would cut off the udder of a cow to get all the milk.³ But to increase the milk of the cow the owner must feed the animal sumptuously with fresh, green and rich food. In the same way moderate and seasonal collection of taxes will draw the people nearer to him and will ensure the future revenues of the state.¹ Bhīṣma advises Yudhiṣṭhira to behave like the gardener who will gather flowers in season without prejudice to the growth of the plant.²

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³ *Śānti Parvan*, lxxi. 15-17; lxxxvii. 20. 21; lxxxviii. 4-5.

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¹ यो हि दोग्ध्र्युपास्ते च स नित्यं विन्दते पयः । एवं राष्ट्रमुपायेन भुञ्जानो लभते फलम् ॥ (Śānti Parvan, lxxi. 17.)

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² मालाकारोपमो राजन्भव माऽङ्गारिकोपमः । तथायुक्तश्चिरं राज्यं भोक्तुं शक्ष्यसि पालयन् ॥ (Śānti Parvan, lxxi. 20; cp. Śukra, iv. 2. 111.)

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The king is further advised to conduct himself in the matter of taxation like a bee sucking honey from flowers, a cowherd tending his cattle, a tigress swallowing her cubs, a leech sucking blood and so forth.³ But here again a caution is given that the people should not be emasculated. It simply means that springs of productive energy must not in the least be disturbed; for to disturb them is to lay the axe at the very root.⁴ Enlightened though these regulations are, still they were not able to observe them to the very letter in practice as is illustrated from the mass of the Buddhist literature and especially the Jātakas. It is said that force was resorted to in case of delay or wilful evasion, and the tax-gatherers harassed the people by forced labour in the fields and gardens.⁵ Unable to bear the burdens people fled from the country and town parts for refuge on the borders of the realm.⁶

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³ Śānti Parvan, lxxxviii. 1-7. ⁴ Śānti Parvan, lxxxvii. 20-21. ⁵ Jātaka 77. ⁶ The Jātakas, vol. v, p. 520.

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Hindu texts on polity always advocate the principle of equity in the matter of collecting taxes. It is said that the weaknesses of the people must be played upon by soft tricks. This must be like the ‘long nosed rat eating the flesh from the feet of sleepy persons, and like the increasingly heavy loads on the back of a young bull’. Hence taxation must keep well within the limits of taxable capacity. In this way it is recommended that the treasury ought to be increased by means of a graduated system of taxation. It is further said that before imposing fresh taxes the leaders of the people must be conciliated so that the masses may not rise to resist.¹ Taxes should then be light. As occasion demanded they must be raised little by little having regard to time and place.² This was possible as the administration was designed with a view to ensure rigorous economy. Machinery was devised to carry on duties efficiently and economically as circumstances allowed.³ Prof. Banerjee’s remark in this connection seems just. ‘The principles on which the tax-system was based were sound

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¹ न चास्थाने न चाकाले करास्तम्यो निपातयेत् । आनुपूर्येण सान्त्वेन यथाकालं यथाविधि ॥ (*Ibid.*, lxxxviii. 12.)

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² *Ibid.*, lxxxvii. 18-19.

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अल्पेनाल्पेन देयेन वर्धमानं प्रदापयेत् ।
ततो भूयस्ततो भूयः क्रमवृद्धिं समाचरेत् ॥
दमयन्निव दम्यानि शश्वत्भारं विवर्धयेत् ।
मृदुपूवं प्रयत्नेन पाशानम्यवहारयेत् ॥
सकृत्पाशावकोणास्ते न भविष्यन्ति दुर्दमाः ।
उचितेनैव भोक्तव्यास्ते भविष्यन्त्ययततः ॥
तस्मात्सर्वसमारम्भो दुर्लभः पुरुषं प्रति ।
यथामुख्यान्सान्त्वयित्वा भोक्तव्या इतरेजनाः ॥
(*Śānti Parvan*, lxxxviii. 7-10.)

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and reasonable. To use the language of modern economists, ability and least sacrifice were the guiding principles of the framers of the financial regulations of ancient times.¹ This statement is supported by unquestionable proofs. Bhīṣma advises Yudhiṣṭhira in similar terms and says that special consideration should be shown to the Vaiśyas who formed the wealthy class of the state. Pointing out to them the necessity of expenses either for administration or defences of the state, without which there will be no peace or protection, a king must exact taxes from the Vaiśyas. They must not be disregarded lest they should leave the capital for the woods. They must be conciliated, and the king must endeavour to please them and win their affection and good will. They must be assured of safety and security for their life and property. The King must adopt such other means by which they would increase their wealth. They are the mainstay of agriculture and commerce, and consequently the mainstay of a state. Hence they must be treated kindly, leniently and sympathetically. There is nothing else which does greater good to the kingdom.²

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¹ Public Administration in Ancient India, p. 180.

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² Mbh., Śānti Parvan, lxxxvii. 35-40.

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It has already been shown that Kauṭalya has not sacrificed scruples of conscience in enunciating principles of taxation. As befits a statesman, he realizes the full responsibility and has advocated a graduated system of taxation. The devices suggested are based on the principle of least sacrifice and they are at once simple and popular. They are, in other words, ‘the soft tricks’ that find mention in the Rājadharma section of the Mahābhārata. By them the burden was made to fall proportionately on all, and they subserved the ends of even distribution. That is, people did not feel taxes to be a strain on their purse.¹

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¹ पक्वं पक्मिवारामात् फलं राज्यादवाप्नुयात् । आमच्छेदभयादामं वर्जयेत्कोपकारकम् ॥ (*Arthaśāstra*, Bk. v, Sec. 2.)

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Kauṭalya fully realizes the danger from the tax-collecting officials. In his opinion the state may promulgate ameliorative measures; but the officials at the lower rung of the ladder might continue the old rates, take to corrupt practices, and indulge in *adharmic* measures of extorting money. Special Commissioners were hence appointed to watch them, and such of those as were found guilty were severely dealt with.²

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² *Śanti Parvan*, lxxxviii. 26; cxxx. 26-27; *Arthaśāstra*, Bk. iv, Sec. 9.

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In his opinion the officer collecting twice the fixed sum as revenue would be sucking the life-blood of the people by his action. It is for the state to prevent such offences of a grave nature; for to tolerate them is tantamount to digging the grave of the administration. Further Kauṭalya enunciates the principle of granting remissions in deserving cases such as cultivators under unfavourable circumstances.³ In this and other respects Kauṭalya shows himself a practical man; but at the same time he does follow the beaten track of the *Dharma Śāstras*.

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³ *Arthaśāstra*, Bk. v, Sec. 2.

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Another aspect of the ancient system of taxation was the grant of immunities from taxes and escheat. This was perhaps actuated both by religious and political considerations; for example, *śrotriyas*, ascetics, women, religious establishments, were exempted from taxes. The right of escheat was in operation to properties other than those enjoyed by *śrotriyas*.⁴ Conformably to the

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⁴ *Manu*, vii. 133-36; viii. 394.

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पक्वं पक्मिवारामात् फलं राज्यादवाप्नुयात् ।
आमच्छेदभयादामं वर्जयेत्कोपकारकम् ॥
(*Arthaśāstra*, Bk. v, Sec. 2.)

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above rule, Kauṭalya lays down that the *śrotriyas*, *ṛtviks*, *purohits* would be granted *brahmadeya* lands exempted from all rates and fines (अदण्डकराणि).

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Most of the available inscriptions record gift of land, free of taxes made by the kings to Brahmans versed in the Vedas. The following may be quoted: ‘These 77, 6/20ths and 1/160ths (*veli*) of land more or less we gave including the trees over ground, the wells under ground, in the land and all other benefits (*prāptis*) of whatever kind having first excluded the former owners and the hereditary proprietors, and having purchased (it) as tax free property (*kāṇi*) for the 106 Bhaṭṭas of this village and for the two shares (of the image) of Sāmantanārāyaṇa-viṇṇagar Emberumān from the rainy season of the thirty-fifth (year of our reign) as a meritorious gift (*dharma-dāna*) with libations of water with the right to bestow mortgage or sell (it) as a tax free grant of land to last as long as the moon and the sun.’¹

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¹ S.I.I., vol. ii, part 1, No. 22.

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An interesting question may be raised here. Is not Kauṭalya perpetrating an economic atrocity by showing partiality towards the *śrotriyas*, by exempting their lands from taxes? An examination, however, of the various duties which devolved on them will be sufficient to justify such a recommendation. According to the *Mānava Dharma Śāstra*,² learning, and teaching, performing sacrifices and causing sacrifices to be performed, receiving gifts and giving gifts, are the six duties of the Brahman (the Brahman was then invariably a *śrotriya*). The same is found in the learned commentary of Nacchi-nārkkiniyar on the first line of the *Sūtram 75*.³

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² अध्यापनमध्ययनं यजनं याजनं तथा । दानं प्रतिग्रहं चैव ब्राह्मणानामकल्पयत् ॥ (i. 88 and x. 75)

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³ அறவகைப்பட்ட பார்ப்பனப்பக்கம். (*Purattiyal of Tolkāppiyam.*)

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The six duties are: ஓதல் (Sans. अध्ययनं), ஓதுவித்தல் (Sans. अध्यापनं), வேட்டல் (Sans. यजनं), வேட்பித்தல் (Sans. याजनं), கொடுத்தல் (Sans. दानम्), கோடல் (Sans. प्रतिग्रहं).

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The learned Tamil commentator pursues the subject further and divides education into three classes: superior, middling, and inferior. The three Vedas, Rig, Yajus, and Sāman belong to the first class. The second constitutes Atharva Veda, the six aṅgas: niruktam, vyākaraṇam, kalpam, gaṇitam, jyotisham and chhandas, and the eighteen Dharmaśāstras of Manu and others. Under the last category come the itihāsas, purāṇas and other miscellaneous literature. Instructions would be fructifying if the Guru first understood the capacity and the taste which the student possessed and then imparted him lessons according to his grasp and understanding.¹ The object of this education is to discipline the mind, speech, and body.² Further it will tend to increase the intelligence, fame and even the age of a person.³

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¹ ஓதுவித்தலாவது கொள்வோ னுணவுவகை அறிந்து அவன் கொளவாக்கொடுக்கும் ஈவோன் தன்மையும் ஈதலியற்கையுமாம். Ibid.

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² इदं शास्त्रमधीयानो ब्राह्मणः शंसितव्रतः । मनोवाग्देहजैर्नित्यं कर्मदोषैर्न लिप्यते ॥ (Manu, i. 104.)

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³ इदं स्वस्त्ययनं श्रेष्ठमिदं बुद्धिविवर्धनं । इदं यशस्यमायुष्यमिदं निःश्रेयसं परम् ॥ (Ibid., 106.) இம்மையயக்குமாலைப் பக்குறைவின்றத் தம்மை விளக்கு மாற்றமுணாராக் கேடின்ற வெம்மை யுலகத்தும் யாற்காணேல் கல்விபோன் மம்மை றறுக்கு மறந்து. (Nālaḍiyār, st. 132.)

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Of the six duties mentioned, three duties—partaking in other’s sacrifices, teaching students, receiving good gifts are the means of a *śrotriya's* livelihood.¹ These three, in the opinion of Naccinārkkiniyar, belong of right to the Brahmans only.² The other three functions are intended for his own elevation. These are reading, performing sacrifices, and bestowing gifts. Those who fulfil these duties were known as *śrotriyas* and deserved the best consideration of the authorities of the state.³ From the nature of the duties expected of them it was impossible for them to earn their livelihood by taking to other callings. After all they discharged these duties for the benefit of the society at large. They spread the light of knowledge without expecting any reward in return whatever be the number of students who approached them. Again by sacrifices they assured the prosperity of the land and people. According to the then prevalent notions, sacrifices were deemed important as, by them alone the earth could enjoy the benefit of good and timely showers, which is the cause of abundance of crops, on which again people depend for their existence.⁴ Perhaps Naccinārkkiniyar entertains the same opinion when he interprets. ‘வேள்வி’ or (sacrifice), as ‘வேளாண்மைபற்றி வேள்வியாயிற்று.’

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¹ > अध्यापनमध्ययनं यजनं याजनं तथा ।

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² ஓதுவித்தலும் வேட்பித்தலும் ஈதலும் அந்தணர்க்கே உரிய. (*Tolkāppiyam Commentary.*)

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³ *Manu*, vii. 82; *Yāj.*, i. 314-15.

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⁴ > अन्नाद्भवन्ति भूतानि पर्जन्यादन्नसंभवः ।

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Gifts are then the means to realize these two ends, namely, education and religion, on which depends the progress of society. Realizing their invaluable services to the society, kings and people bestowed upon

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दानं प्रतिग्रहश्चैव षट्कर्माण्यग्रजन्मनः॥ (*Manu*, x. 75.)

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यज्ञाद्भवति पर्जन्यो यज्ञः कर्मसमुद्भवः ॥ (*Bhagavat Gīta*, iii. 14.)

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these *śrotriyas* lavish gifts of money and lands tax-free, much like modern grants-in-aid furnished for educational and other improvements, no income-tax being charged on these grants.

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These and other considerations indicate Kauṭalya’s great regard for the welfare of the people. Far from being selfishly autocratic, the Mauryan state must have taken an abiding interest in the well-being of its citizens. It is not difficult to infer from these various regulations that the principles of taxation were sound and the administration was efficient. The theories of early writers like Maine who called the Hindu States ‘tax-collecting institutions’, have little justification at any rate in regard to Mauryan times.

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