Hindu Administrative Institutions c9.s4.1

c9.s4.1

There is evidence to demonstrate that emergency taxes and loans were raised occasionally. These are not taxes in the strict sense of the term. They are of the nature of voluntary gifts. These free gifts Kauṭalya characterizes as *praṇaya*. To exact such gifts, especially from the rich the state showed some consideration. Those who came forward to contribute were honoured with presents and titles. The presents included among others an umbrella, turban and some ornaments with which the donors were honoured in the court, and their names were advertised in public so as to attract more gifts of a voluntary nature.¹ It may be remarked in passing that this device is not new to students of modern fiscal history. Sometimes recourse was had to loans repayable by the state when the latter is in a position to pay. Such cases were resorted to when the state was in a condition of impending danger, to avert which, experts felt, the reserve in the treasury would not suffice. When grave and contagious diseases ravaged the land, and pestilence and famine faced the kingdom in all nakedness, or when a powerful enemy was at the door essaying to force through the gates, the king could go abegging for funds. The appeal to be made is as follows:—"There is a grave danger facing us in all nakedness. The enemy wants to ruin us but will in turn be ruined by your help. For your protection I require funds which are returnable after we have got over the danger. If on the other hand the enemy gets possession of this land he will deprive you of your property, and even of your wives and sons. To avert this you must co-operate by lending me a helping hand. But in this let there be no violation of the accepted canons of taxation. By your help again I shall be protected. What is the use of treasure, if it were not used in times of great crisis?' In this way it is said the appeal must be couched in soft and sweet words so that it may produce the desired effect.¹