Hindu Polity: A Constitutional History of India in Hindu Times c47.28

c47.28

§ 344. Hindu politicians disliked direct taxation. They had practically no direct tax in their system except the produce-tax. Even the produce-tax in its last analysis was an indirect tax. Import duties which were exclusively 'indirect' in their incidence were the next great tax after the produce tax. Export duties were few and they were more of administrative than revenue levies. Generally those articles which were not encouraged to go out were taxed as exports. The next great source of revenue was the mining industry. The State under Chandragupta and earlier generally nationalized the industry. But in the Mānava Code (VIII. 39) mining is open to the public. The tax demanded, however, is still heavy. A tax of 50% is laid down, on the principle that mine is like treasure-trove which belongs as much to the State as to the person who finds it. A tax for protection, as in any other case, is deemed but lawful, for the king is the protector of both the upper and sub-soil (*adhi-pati*: 'bhūmeradhipatir hi saḥ,' Manu, VIII. 39). Medhātithi in explaining the law of the Mānava Code says that although no one knows what is there in the land and the government has to do very little guarding there yet as there is a likelihood of the whole land being taken away by a strong enemy, the king is entitled to his 'share' for this constructive protection.¹