Tax system according to Manusaṃhitā

Like daṇda vali or revenue is also a very important item connected with administration. Unless the king is careful about the realisation of revenue from the people, the kingdom can not be prosperous. Again, if the king is inordinately unjust in the collection of revenue he is very much disliked by his own people and loss of sympathy on the part of his subjects may be fraught with disastrous consequences.

Hence so far as the imposition and collection of revenue is concerned, which is a prime duty of the king, he should be guided by the decisions of the śāstras and should not behaved wantonly.

“Manu says that the king should see that the collection of revenue is done by responsible officers who are neither extremely lenient nor severely rude. Manu is careful enough to remind the king of his relationship with his subjects which is very much similar to that between a parent and his son”.^[1]

“sāṃvatsarikamāptaiśca rāṣṭrādāhārayed balim |
syāccāmnāyaparo lokevarteta pitṛvannṛṣu ||”7.80 ||^[2]

“Let him cause the annual revenue in his kingdom to be collected by trusty (officials), let him obey the sacred law in (his transactions with) the people, and behave like a father towards all men”. 3

Here in above śloka according to Medhātithi ‘āptaiḥ,’ means, the officers in charge of collection of revenue should be trusted persons so that there is no occasion for mismanagement or misappropriation of money

“Āptairupadhāśuddhairiti medhātithi” and ‘āmnāyaparo’, means the king must be reasonable at the time of collection of revenue.

He also suggests that the king must realise only so much revenue as his subjects have been paying since the time of their ancestors; the king must not demand anything more and thereby incur their displeasure.

“…āmnāyaparaśca syāt | āgamapradhānatarkaśāstrāṇyāśrayet athavā pāraṃparyāgatameva bhāgaṃ gṛhniyānnādhikamiti medhātithi |”

The king should try to increase the wealth of his kingdom by levying taxes on traders.

Manu says—

“krayavikrayamadhvānaṃ bhakkañca saparivyayam |
yogakṣemañca samprekṣya vaṇijo dāpayeta karān ||” 7.127 ||^[3]

“Having well considered the rates of purchase and of sale, the length of the road, the expense for food and condiments, the charges of securing the goods, let the king make the traders pay duty.”^[4]

In this connection commentator Kullūkabhatṛtṛa says about this verse—

“kiyatā mūlyena krītamidaṃ vastralavaṇādi dravyaṃ vikrīyamāṇañcātra kiyallabhyate kiyaddūrādānītaṃ kimasya vaṇijo bhakkavyāyena śākasūpādinā parivyayena lagnaṃ, kimasyāraṇyādau caurādibhyo rakṣārūpeṇa kṣemapratividhānena gataṃ, korasya idānīṃ lābhayogaḥ— ityetadavekṣya vaṇijaḥ karān dāpayet |”

Medhātithi says in his Commentary—

“karagrahaṇavidhiḥ | kiyatā mūlyena krītametat, kiyacca vikrīyamāṇaṃ labhate, kiyatā ca kālena vikrīyate, kiyat prātibhāvyena naśyatyatha netyevamādirūpakrayavikrayaparīkṣā | adhvānaṃ cirāciragamanaprāpyatām | bhaktaṃ saktavodanādimūlam parivyaya—stadupakaraṇaṃ sarpiḥ sūpaśākādi dhanādi ca | yogakṣemamarapye kāntāre vā gacchato rājabhayaṃ caurabhayaṃ niścauratā vetyadi | etadapekṣya vaṇigbhyaḥ karā ādātavyāḥ vaṇigbhirdāpayet karāniti pāṭho yukkaḥ, gatyadiniyamena karmasaṃjñāyā abhāvāt | daṇḍavacano vā dhātustadā daḍivad dvikarmakatvam |”

Here it is stated that:

‘The imposition of taxes requires a critical examination of certain conditions enumerated here’.^[5]

According to Kullūka and savajñanārāyaṇa ‘yoga’ means, the net profits “aprāptasya prāpaṇaṃ yogaḥ” and ‘Kṣema’ the charges for securing the goods against robbers and so forth ‘prāptasya rakṣaṇaṃ kṣemaḥ’ Again according to Medhātithi, Govindarāja and Rāghavānanda the whole compound denotes the latter charges alone.”^[6]

King should collect taxes considering all of the situations of both himself and his subject.

“yathā phalena yujyate rājā kartā ca karmaṇāma |
tathāvekṣya nṛpo rāṣṭre kalpayet satataṃ karān ||”7.128 ||^[7]

“After due consideration king shall always fix in his realm the taxes in such a manner that both he himself and the man who does the work receive their due reward.”^[8]

This verse discusses one of the most cardinal principles of taxation

Tax should be levied in such a manner that the person who pays tax easily and he should not feel any pressure or difficulty. And it is worthy of notice too, that Manu recommends annual payment of taxes.

In this connection Kullūkabhatṛtṛa says in his commentary of this verse—

“yathā rājā avekṣaṇādikarmaṇaḥ phalena, yathā ca kāṣikavaṇigādayaḥ kṛṣivāṇijyādikarmaṇāṃ phalena sambadhyante, tathā nirūpya rājā sarvadā rāṣṭrakarān gṛhnīyāta” | and Medhātithi says “etadevāha karmaṇāṃ kartā vāṇijakaḥ rājā ca phalena yujyeta tathā karān kalpayenna parimāṇaniyamakāraṇamasti | yatra mahān lābhastatrādhikamapayukkaparimānātikrameṇa grahītavyam |”

“yathālpālpamadantyādyaṃ vāyokovatsaṣaṭpadāḥ |
tathālpālpo grahītavyo rāṣṭrādrājñābdikaḥ karaḥ ||” 7.129 ||^[9]

Its English version is—

“As the leech, the calf, and the bee take their food little by little, even so must the king draw from his realm moderate annual taxes.”^[10]

Commentator Kulliūka says in his commentary—

“yathā jalaukovatsabhramarāḥ stokastokāni rakkakṣīramaghūni adantyevaṃ rājñā mūladhanamucchindatā alpo'lpo rāṣṭrād āvdikaḥ karo grāhyaḥ |”

Medhātithi says in his commentary of this verse—

“kṣīṇakṛṣernyūnaḥ karo grahītavya ityevamarthametat | vārṣokaso jalaukasaḥ ṣaṭpadā bhramarāḥ | yathā te svalpamādadānāḥ paripuṣṭā bhavanti tathā rājñā mūlacchedo na kartavyaḥ |”

King should collect taxes of the profit of the sale price of the valuable things and according to the productivity of land separately.

“pañcāśadbhāga ādeyo rājñā paśuhiraṇyayoḥ |
dhānyānāmaṣṭamo bhāgaḥ ṣaṣṭho dvādaśa eva vā ||” 7.130 ||^[11]

Means,

“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.”^[12]

Kullūkabhatṛtṛa says in his commentary of this verse—

“mūlādadhikayoḥ paśuhiraṇyayoḥpañcāśadbhāgo rājñā grahītavyaḥ | evaṃ dhānyānāṃ ṣaṣṭho'ṣṭamo dvādaśo vā bhāgo rājñā grāhyaḥ | bhūmyutkarṣāpakarṣāpekṣayā karṣaṇādiklośalāghavagauravāpekṣaścāyaṃvahvalpagrahaṇa— vikalpaḥ |”

“ādadītātha ṣaḍbhāgaṃ drumāṃsamadhusarpiṣām |
ganghauṣadhirasānāñca puṣpabhūlaphalasya ca ||” 7.131 ||^[13]

Means:

“He may also take the sixth part of tree, meat, clarified butter, perfumes, medical herbs, substances used for flavouring food, flowers, roots and fruit”.^[14]

This one hundred and thirty first verse and next two give a detailed scale of taxes on different articles. The scale here may differ from similar ones which we find in other works on political economy.

“patraśākatṛṇānāñca vaidalasya ca carmaṇām |
mṛnmayānāñca bhāṇḍānāṃ sarvasyāśmamayasya ca ||” 7.132 ||^[15]

“Of leaves, pot, herbs, grass, objects made of cane skins of earthen vessels, and all articles made of stone.”^[16]

According to to sarvajñanārāyaṇa; ‘vaidala’ is,

“vaidalavaṃśādividalakṛta bhāṇḍādiḥ iti |”

Commentator Rāghavānanda says ‘vaidala’ means, vaidalasya śūrpāderiti |”^[17]

“mriyamāṇo'pyadadīta na rājā śrotriyāt karam |
na ca kṣudhā'sya saṃsīdecchrotriyo viṣaye vasan ||” 7.133 ||^[18]

“Though dying with want, a king must not levy tax on śrotriyas and no śrotriya residing in his kingdom, must perish from hunger.”^[19]

“It is highly significant that Manu opines that a vedic scholar should not pay any tax. It is undoubtedly a unique privilege. And when we know that it is the duty of the state to maintain such scholars who have no other source of income and who dedicate their lives to the noble cause of imparting education, temporal and spiritual and thereby carry with them the torch of knowledge to be passed on to posterity, it is not in the least surprising that they are exempted from the payment of tax. A better and more dignified attitude to scholarship and culture is inconceivable”.^[20]

Beside this the king should arrange the livelihood of this śrotriya brāhmaṇa and he should save him in all types of calamity or misfortune as like his legitimate child.

“śrutavṛtte viditvāsya vṛttiṃ dharmyaṃ prakalyayet |
saṃrakṣet sarvataścainaṃ pitā putramivaurasam ||” 7.135 ||^[21]

Means,

“Having ascertained his learning in the veda and the purity of his conduct, the king shall provide for him means of subsistence in accordance with the sacred law, and shall protect him in every way, as a father protects the lawful son of his body.”^[22]

In this connection commentator Kullūkabhatṛtṛa says about this verse—

“śāstrajñānānuṣṭāne jñātvā asya tadanurupāṃ dharmādanapetāṃ jīvikāmupakalpayet, caurādibhyaścainam aurasaṃ putramiva pitā rakṣet” and Medhātithi says in his commentary of this verse ‘dharmyāṃ vṛttiṃ yathā kuṭumvadharmasyāvasādanaṃ na bhavati | vṛttiṃ prakaḍpya sarvato rakṣeccaurādibhyaḥ | svayamadhikavyayācca |”

“yasya rājñastu viṣaye śrotriyaḥ sīdati kṣudhā |
tasyāpi tat kṣudhā rāṣṭramacireṇaiva sīdati ||” 7.134 ||^[23]

“The kingdom of that king, in whose dominions a śrotriya pines with hunger, will even, are long be afflicted by famine.”^[24]

If the śrotriya is not pine with hunger then the state will free from famine.

Commentator Kullūkabhaṭṭa says in his commentary of this verse—

‘yasya rājño deśo śrītriyaḥ kṣudhāvasanno bhavati tasya rāṣṭramapi durbhikṣādibhiḥ kṣudhā śīghramavasādaṃ gacchati’ |

Again—

“saṃrakṣyamāṇo rājñā yaṃ kurute dharmamanvaham |
tenāyurvarddhate rājño draviṇaṃ rāṣṭrameva ca ||” 7.136 ||^[25]

“Whatever meritorious acts such a brāhmaṇa performs under the full protection of the king, thereby the king’s length of life, wealth and kingdom increase’.^[26]

In this respect commentator Kullūkabhaṭṭa says that—

“sa ca śrotriyo rājñā samyagrakṣyamāṇo yaṃ dharmaṃ pratyahaṃ karoti tena rājña āyurdhanarāṣṭrāṇi varddhante |”

“yat kiñcidapi varṣasya dāpayet karasaṃjñitam | vyanahāreṇa jīvantaṃ rājā rāṣṭre pṛthagjanam ||” 7.137 ||^[27]

English version is—

“Let the king make the common inhabitants of his realm who live on small trade pay annually some trifle which is called a tax.”^[28]

Commentator Kullūkabhaṭṭa says in his commentary of this verse that.—

‘‘rājā svadeśe śākaparṇādisvalpamūlyavastukrayavikrayādinā jīvantaṃ nikṛṣṭajanaṃ svalpamapi karākhyaṃ varṣeṇa dāpayet |”

Commentator Medhātithi says in his commentary of this śloka—

‘kṛṣidhanaprayogakrayavikrayādivyavahāreṇa jīvantaṃ pṛthagjanaṃ vrāhmaṇāt śrotriyādanyaṃ karaṃ dāpayet | karasaṃjñā sañjātā'sya karasaṃjñitam |’

Here prṛthagjanam means—‘the common inhabitants’ i.e small dealers in vegetables, leaves, and so forth or dealers in cakes.^[29] excepting śrotriya Brāhmaṇa everybody were used to pay tax.

“kārukān śilpinaścaiva śūdrāṃścātmopajīvinaḥ |
ekaikaṃ kārayet karma māsi māsi mahīpatiḥ ||” 7.138 ||^[30]

Means,

‘Mechanics and artisans, as well as śūdras who subsist by manual labour, he may cause to work for himself one day in each month’.^[31]

In this context commentator Kullūkabhaṭṭa says—

“kārukān sūpakārādīn śilpibhya īṣadutkṛṣṭān śilpinaśca lohakārādīn śūdrāṃśca dehakleśopajīvino bhārikādīn māsi māsyekaṃ dinaṃ karma kārayet |”

And commentator Medhātithi says about this verse—

“śilpamātropajīvinastān māsaṃ māsamekamahaṃ karma kārayet, ātmopajīvinaśca śūdrā veśabhāravāhādayaḥ |”

Manu also said—

“nocchindyādātmano mūlaṃ pareṣāñcātitṛṣṇayā |
ucchindan hyātmano mūlamātmānaṃ tāṃśca pīḍayet ||” 7.139 ||^[32]

‘Let him not cut up his own root (by levying no taxes), nor the root of other men by excessive greed, for by cutting up his own root (for theirs), he makes himself or them wretched.’^[33]

Without collection of tax a king should not empty the royal treasury. Due to overgreediness a king should not collect excess tax afflicting his subjects.

Thus the king oppresses his subjects. Because affliction of the subjects and empty treasury call the war. King may be obstructed by his enemy. Then under compulsion king should collect excess quantity of tax from his subjects. He makes himself the cause of the affliction to his subjects. On the other side the king who collects a little amount of tax from his subjects for their benefit then his subjects will not be in trouble.

In this context commentator Kullūkabhaṭṭa said in his commentary of this verse—

“prajāsnehāt karaśulkāderagrahaṇamātmano mūlocchedaḥ atilobhena pracurakarādigrahaṇaṃ pareṣāṃ mūlocchedaḥ etadubhayaṃ na kuryāt, yasmāt ātmano mūlamucchidya kośakṣayādātmānaṃ poḍayet | pūrvārddhāt pareṣāñcetyapi samvadhyate | pareṣāṃ mūlamucchidya tāṃśca pīḍayet |”

And Medhātithi also said about this verse—

“karaśulkādera—grahaṇamātmano mūlacchedaḥ ativahugrahaṇaṃ pareṣām tacca tṛṣṇayā bhavatītyanuvādaḥ | ātmano mūlacchedenātmapīḍā bhavati koṣakṣayāt, ataste'pi pīṅyante | upasthite vigrahe kṣīṇakoṣaśattiraribhiraparuddhoddharaṇe'vaśyaṃ bhavet | sā ca teṣāṃ mahatī pīḍā | yat tu sarvakālikaṃ karagrahaṃṇaṃ sampādayato nākheditā bhavati |”

It is quite obvious that tax is the most important source of income is tax. As such, total remission of tax is not advised and it is not expected for a kingdome. It is only in the case of śrotriya that we find an exception.

To run the kings administration king should appoint some supervisors.

Manu says about their quality and ability.

“adhyakṣān vividhān kuryāt tatra tatra vipaścitaḥ |
te'sya sarvāṇyavekṣerannṛṇāṃ kāryāṇi kurvatām ||” 7.81 ||^[34]

Means,

“For the various (branches of business) let him appoint intelligent supervisors, they shall inspect all (the acts) of those men who transact his business.”^[35]

In this context commentator Kullūkabhaṭṭa says in his commentary of this verse—

“tatra tatra hastyakharatha—padātyadyarthādisthaneṣvadhyakṣānavekṣetṝn vividhān pṛthak pṛthak vipaścitaḥ karmakuśalān kuryāt | te cāsya rājñasteṣu hastyaśvādisthaneṣu manuṣyānāṃ kāryāṇi kurvatāṃ sarvāṇi kāryāṇi samyak karaṇārthamavekṣeran |”

Commentaror Medhātithi says about this verse—

“adhyakṣā adhikṛtāḥ pratyavekṣitārastān kuryāt | vividhān vahuprakārān mṛdūnugrān dhārmikān arthārjjanaparāṃśca | tatra tatra suvarṇakoṣṭāgāre paṇyakuṇyakarmasvadhikṛtāḥ pratyavekṣitārastān śulkanauhastyakharathapadātyadīn vipaścitaḥ sthapayet | sarva ete amātyaguṇasampadyuktā vijñeyāḥ | yathokkamadhyakṣapracāre te adhyakṣāḥ sarvāṇi kāryāṇyavekṣerannanyeṣāṃ nṛṇāṃ tatsthanopayogināṃ kāryyāṇi kurvatāṃ hastyadhyakṣeṇa hastipakāḥ akhādhyeṇa turaṅgamādyāḥ gavādhyakṣeṇa karṣaṇādayaḥ |”

Without mentioning any branch manu says that the supervisors would posted in some branches. But Kullūkabhaṭṭa mentioned some supervisors. These are the superintendent of Elephants, the superintendent of Horses, the superintendent of Chariot and the superintendent of agriculture etc.

But Medhātithi mentioned the name of the collector of customs with the name of other supervisors.

Manu says that supervisors should be intelligent persons. But Medhātithi thinks that these officers should be endowed with all the qualifications of ministers which have been described before. He wants to suggest that, if the supervisors are not highly qualified persons and of the rank of ministers they will fail to discharge the duties with which they will be entrusted. In a word, these people must be above suspicion and very competent persons, so that there may not be any loss of revenue which may endanger the prosperity of the state.

Manu also says—

“śulkasthaneṣu kuśalā sarvapaṇyavicakṣaṇāḥ |
kuryurarghaṃ yatha paṇyaṃ tato viṃśaṃ nṛpo haret || 8.398 ||^[36]

The persons who are expert in the matter of collecting of tax, skilled should fixt the price rupees of the import and export materials according to there quality. King should collect as tax 1/20 share of the businessman’s profit.

In this context Commentator Kullūka said in his commentary of this verse—

“sthalajalapathavyavahartṛbhyo rājagrāhyo bhāgaḥ śulkam | tasya vyavasthaneṣu ye kuśalāḥ tathā sarvapaṇyānāṃ sarāsārajñāḥ te paṇyeṣu yamarghaṃ mūlyamanūrūpaṃ kuryuḥ tato lābhadhanādviṃśatibhāgaṃ rājā gṛhnīyāt |”

Manu says about the punishment of a trader who breaks the rule of taxation.

“śulkasthanaṃ pariharannakāle krayavikrayī mithyāvādī ca saṃkhyāne dāpyo'ṣṭaguṇamatyayam ||” 8.400 ||^[37]

A person who trades out of customs house or trades untimely or who lies the number of sales goods, he should pay eight times of duty.

In this context commentator Kullūka said in his commentary of this verse—

“śulkamoṣaṇāya utpaśena gacchati, akāle rātrādau vā krayavikrayaṃ karoti, śulkakhaṇḍanārthaṃ vikreyadravyasya vā alpāṃ saṃkhyāṃ vakti | rājadeyamalapitamaṣṭaguṇaṃ daṇḍarūpatayā dāpyaḥ |”

Footnotes and references:

[1]:

Ashokanath Shastri, (Ed.): Manusaṃhitā, pp.98-99.

[2]:

Manabendu Bandyopadhaya: Op. cit., p.667.

[3]:

Manabendu Bandyopadhaya: Op. cit., p. 687.

[4]:

Ashokanath Shastri: Op. cit., p. 141.

[5]:

ibid., p.142.

[6]:

loc.cit.

[7]:

Manabendu Bandyopadhaya: Op. cit., p. 688.

[8]:

Ashokanath Shastri: Op.cit., p.142.

[9]:

Manabendu Bandyopadhaya: Op. cit., p.688.

[10]:

Ashokanath Shastri: Op. cit., p.143.

[11]:

Manabendu Bandyopadhaya: Op. cit., p.689.

[12]:

Ashokanath Shastri: Op. cit., p.143.

[13]:

Manabendu Bandyopadhaya: Op. cit., p. 689.

[14]:

Ashokanath Shastri: Op. cit., p. 144.

[15]:

Manabendu Bandyopadhaya: Op. cit., p. 689.

[16]:

Ashokanath Shastri: Op. cit., p. 144.

[17]:

loc. cit.

[18]:

Manabendu Bandyopadhaya: Op. cit., p.689.

[19]:

Ashokanath Shastri: Op. cit., p.145.

[20]:

loc.cit.

[21]:

Manabendu Bandyopadhaya: Op. cit., p.690.

[22]:

Ashokanath Shastri: Op. cit., p.146.

[23]:

Manabendu Bandyopadhaya: Op. cit., p. 690.

[24]:

Ashokanath Shastri: Op. cit., p.145.

[25]:

Manabendu Bandyopadhaya: Op. cit., p. 690.

[26]:

Ashokanath Shastri: Op. cit., p.146.

[27]:

Manabendu Bandyopadhaya: Op. cit., p. 690.

[28]:

Ashokanath Shastri: Op. cit., p.147.

[29]:

loc. cit.

[30]:

Manabendu Bandyopadhaya: Op. cit., p. 691.

[31]:

Ashokanath Shastri: Op. cit., p.148.

[32]:

Manabendu Bandyopadhaya: Op. cit., p.691.

[33]:

Ashokanath Shastri: Op. cit., p.148.

[34]:

Manabendu Bandyopadhaya: Op. cit., p. 668.

[35]:

Ashokanath Shastri: Op.cit., p. 99.

[36]:

Manabendu Bandyopadhaya: Op. cit., p. 879.

[37]:

ibid., p. 880.