Tax system according to Kauṭilya

To run the kings administration king should appoint some supervisors named the collector of customs, the superintendent of yarns, the Director of Agriculture, the controller of spirituous Liquors, the supervisor of Animal Slaugter, the superintendent of Courtesans, the controller of shipping the Superintendent of cattle, the superintendent of Horses, the Superintendent of Elephants, the Superintendent of chariot, the superintendent of foot soldiers, the commandant of the Army, the superintendent of passports, the super in tendent of pastures, the city Superintendent etc.

Among them the importance of the collector of customs is very important in the field of taxation. King should fixed the amount of tax among his subjects according to there ability. He should collect taxes through the collector of customs. Before cololecting the taxes King should appoint some collectors of customs.

Kauṭilya says about tariff of duties vividly.

(tridhā dvidhā ca śulkavibhāgaḥ, sāmānyataḥ śulkasya iyattānirdeśaśca) śulkavyavahāraḥ | “vāhyamābhyantaraṃ cātithyaṃ, niṣkrāmya praveśyaṃ ca śulkam | praveśyānāṃ mūlyapañcabhāgaḥ |” (2.22.1-3).39 (puṣpādīnāṃ śulkavyāvastha) “puṣpa —phala—śāka—bhūla kanda— vāllikyabīja śuṣkamatsyamāṃsānāṃ ṣaḍbhāgaṃ gṛhnīyāt |” (2.22.4).^[1]

English version says—‘(Goods are) from the countryside, from the city and from foreign lands. That on (goods) going out and that on (goods) coming in is duty. On goods coming in (the duty shall be) one-fifth of the price. Of flowers, fruits, vegetables, roots, bulbous roots, fruits of creepers, seeds, dried fish and meat, he should take one sixth part (as duty).”^[2]

Here (Duty on good):

“Produced in the countryside (bāhyam), produced in the city (ābhyantara) and foreing (ātithya)’^[3]

“svadeśīya—papyasamvandhi vāhyam, svadeśaparadeśayormadhyadeśotpanna—dravyasaṃvandhi ābhyantaraṃ, paradeśīyasamvandhi ātithyam |”

(As it is seen in the Kauṭilīyam Arthaśāstram edited by Manabendu Bandyapadhaya, part-I, foot note p.406).

“We can understand ātithya as duty on internal trade (between city and country) and śulka as duty on foreign trade”.^[4]

‘goods going out of the city into the country and out of the country into foreign lands (naiṣkrāmya) and coming from foreign lands into the country and from the country into the city (prāveśya)’.

‘Mulyapañcabhāgaḥ: this implies that the duty on imports was received in cash.’^[5]

(śaṅkhādīnāṃ śulkavyavasyā)“śaṅkha—vajra—maṇi muktā—pravāla hārāṇāṃ tajjātapuruṣaiḥ kārayet kṛtakarmapramāṇakālavetanaphala—niṣpattibhiḥ | kṣauma—dukūlakrimitāna—kaṅkaṭa—haritāla—manaḥśilāñjanahiṅguluka—lohavarṇadhātūnāṃ candanāgurukaṭukakiṇvāvarāṇāṃ carmadantāstaraṇa prāvaraṇa—krimijātānām ajaiḍakasya ca daśabhāgaḥ, pañcadaśabhāgo vā |” (2.22.5-6)^[6]

Means,

“Of conch shells, diamonds, gems and necklaces of pearls and corals he should make (a valuation) through men expert in the line, making an agreement with them as to the amount of work, time allowed and wages. On Kṣauma, dukūla, silk yarn armours, yellow orpiment, red arsenic, antimony, vermilion metals of various kinds and ores, on sandal wood, aloe, spices, fermentation and minor substances, on skins, ivory, bed-spreads, covering and silk cloth, and on products of goats and rams, (the duty to be charged is) one tenth part or one fifteenth part’.^[7]

In the context of Kṣaumadukūla etc. it is said in Srīmūlā Commentary of T. G. Sastri—

“kṣaumādīnāṃ kṣaumaṃ sthūlavalkajaṃ dukūlaṃ sūkṣmavalkajaṃ krimitānaścīnapaṭṭaḥ kaṅkaṭaḥ sūtrasannāhaḥ haritāla manaśśilāhigulukā vyākhyātāḥ añjanaṃ sauvīrakādi, idaṃ vyākhyāyāmeva paṭha›te, lohavarṇo lohajātiḥ dhāturgairikādiḥ ityeteṣāṃ candanādīnāṃ candanāguruṇī prasiddhe kaṭṭakaṃ pippalyādi kiṇvāvaraṃ kiṇvaṃ mahyavījaṃ tadantaṃ tailajātīyaṃ dravajātam itye teṣāṃ surādīnāṃ surā madyabhedaḥ danto gajadantaḥ ajinaṃ kṛṣṇācarma kṣaumadukulanikaraḥ kṣaumaniṣpādanārthā dukūlaniṣpādanāthaśca tantunikarāḥ āstaraṇaṃ śayanopaveśanasādhanaṃ prāvaraṇaṃ prāvāraḥ krimijātaṃ kauśeyam ityeteṣāma, ajailakasya ca ajailakālomajasya ca daśabhāgaḥ pañcadaśabhāgo vā śulkaṃ bhavati |”^[8]

Here “Śaṅkha etc. ‘it seems that hāra is to be construed with muktā and pravāla only. Śaṅkha, varjra and maṇi being independent items.

Kārayet: supply mūlyam as the object. The valuation is necessary for charging duty for 1/6th part of these things can hardly be fixed off hand. It is in fact doubtful if duty on jewels etc. was received in kind. And if cash duty fixed after valuation is to be understood, it is possible to suppose that these belongs to imports.

‘Kṛtakarma etc: This is a standard formula for work given on a contract basis.

Breloer (III, 451-3) says that Śaṅkha etc. come from the king’s ground and hence are duty free; only the cost of labour increases its value. He seems to understand ‘special officers, to whom proceeds (niṣpatti) come from the result (Phala) of the work done, amount, time and wage, see these goods through duty free. This appears very doubtful’.

Krimitāna seems to be silk yarn, while krimijāta appears to be silk cloth lohavarṇadhātu “minerals of the class of metals, such a red chalk’ ‘metals and colouring material.”^[9]

For varṇa as kind or type.

“(vasstrādīnāṃ śulkavyavastha) vastra catuṣpada—dvipadasūtrakārpāsa gandha—bhaiṣajya kāṣṭhaveṇu—valkalacarmamṛdbhāṇḍānāṃ dhānyasneha—kṣāra—lavaṇa—madyapakvānnādīnāṃ ca viṃśatibhāgaḥ pañcaviṃśatibhāgo vā | dvārādeyaṃ śulkaṃ pañcabhāgaḥ ānugrāhikaṃ vā yathādeśopakāraṃ sthapayet |”(2.22.7-8).^[10]

English version says—

‘On clothes, four footed and two-footed creatures, yarn, cotton, perfumes, medicines, woods, bamboos, barks, leather goods and earthen-ware, and on grains, fats, sugars, salts, wine, cooked food and so on (the duty is) one twentieth part or one twenty-fifth part. To be received at the gate is one-fifth of the normal duty, or he should fix it with a concession in accordance with the benefit derived by the country.’^[11]

Here the word carmamṛdbhāṇdānaṃ means leather goods and earthen ware Dvārādeyam means ‘collections meant for door Keeper’ sulkapañcabhāgaḥ means “the addition one fifth of the śulka is be paid at the time of enyty into or exit from the city and is over and above the regular Śulka’.

(As it is seen in the Kauṭilīyam Arthaśāstra edited by Manabendu Bandyopadhay, part-I, p. 408).

Ānugrāhikam means–‘an anugraha or consession by the state. It may be that this option applies not only to the town duty but to all import and export duties’.^[12]

(tattatadravyotpatrideśe tadvikrayaniṣedhaḥ, atikrame daṇḍaśca) “jātibhūmiṣu ca paṇyānām avikrayaḥ | khaṇibhyo dhātupaṇyādāne śaṭchatam atyayaḥ | puṣpaphalavāṭebhyaḥ puṣpaphalādāne catuṣpañcāśatpaṇo daṇḍaḥ | ṣaṇḍebhyaḥ śākamūlakandādāne pādonaṃ dvipañcāśatpaṇo daṇḍaḥ | kṣettebhyaḥ sarvasasyādāne tripañcāśatpaṇaḥ | paṇo'dhyardhapaṇaśca sītātyayaḥ | “ato navapurāṇānāṃ deśajāticaritrataḥ | papyanāṃ sthapayecchulkamatyayaṃ cāpakārataḥ ||” (2.22..9-15).^[13]

Means,

‘And no sale of commodities (shall be allowed) in the places of their origin. For taking metal goods from mines the penalty is six hundred (paṇas). For taking flowers and fruits from flower -gardens and fruit-orchards, the fine is fifty-four paṇas. For taking vegetables, roots and bulbous roots from vegetable-gardens, the fine is fifty-one and three quarter paṇas. For taking all kinds of crops from fields, (the fine is) fifty-three paṇas. One paṇa and one paṇa and a half is the penalty in case of agricultural produce. From this, he should fix the duties for new and old commodities in accordance with the customs of the country and the community, and penalty according to the offence.^[14] Here the word sitātyaya means “Penalty for taking agricultural produce, without the kings’s permission.”

(As it is seen in the Kauṭilīyam Arthaśāstra edited by Manabendu Bandyopadhay, part-I, p. 409).

Deśajāticaritrataḥ means ‘according to the customs of the region and the caste’ appears preferable to ‘place, class of goods and custom’ or ‘land caste and occupation’.^[15]

Kauṭilya said the rules and regulations for collecting tax in tax house by the appointed officers:

(śulkāsālāsū adhikāriniyojanena śuklagrahanavidhiḥ) “śulkādhyakṣaḥ śulkaśālāṃ dhvajaṃ ca prāṅmukhaṃm udaṅmukhaṃ vā mahādvārābhyāśe niveśayet | śulkādāyinaścatvāraḥ pañca vā sārthopayātān vaṇijo likheyuḥkekutastyāḥ kiyatpaṇyāḥ kva cābhijñānaṃ mudrā vā kṛtā iti |” (2.21.1-2).^[16]

English version says—

“The Collector of Customs and Tolls should establish the customs house and the flag facing the east or the north in the vicinity of the big gates (of the city). The receivers of duty, four or five in number, should record in writing (details about) traders who have arried in a caravan, who they are, from what place, with how much merchandise and where the identity-pass (was issuied) or the stamping was made.”^[17]

Here the word ‘abhijñānaṃ mudrā vā’ the two are different. The word ‘abhijñāna [abhijñānaṃ]’ means a short of pass for “identification of the trader, the latter—‘the stamp or seal made on the package of goods. Mudrā means the passport which a person must carry about with him.”^[18]

Mudrā means the passport which a person must carry about with him.

In this context in srimūlā commentary it is said about ‘abhijñānaṃ mudrā’:

“antapālakṛtapaṇyaviśeṣajñapti mudrāviṣayaḥ | śulkādāyināṃ bahutvaṃ visaṃvādaparihārārtham |”^[19]

Here, it is discussed that those merchants who breaks the rules while paying tax shall be punishable.

(niyamollāṅghināṃ mithyābhāṣiṇāṃ vaṇijāṃ daṇḍāḥ anṛtavyavahāraparijñānopāyāśca) “amudrāṇāmatyayo deyadviguṇaḥ | kuṭamudrāṇāṃ śulkāṣṭaguṇo daṇḍaḥ | bhinnamudrāṇāmatyayo ghaṭikāsthone sthanam | rājamudrāparivartane nāmakṛte vā sapādapaṇikaṃ vahanaṃ dāpayet | (2.21.3-6).^[20]

“For (goods) without the stamp the penalty is double the dues. For those with a forged stamp, the fine is eight times the duty. For those with broken stamps, the penalty is distraint in the ware-house. In case of change of the royal stamp or of (change in) the name, he should make (the trader) pay a fine of one paṇa and a quarter per load.^[21]

Here amudrāṇām in śrīmūla commentary ‘mudrāpahitānāṃ vaṇijām |’. But if the word amudrāṇām is used with the word paṇyānām then it is easy to under stand ‘supply paṇyānām rather than vanijām’.

The word ‘bhinna may refer to accidental breaking. Meyer understands deliberate tampering’.

The word ghaṭikāsthāne sthānam: this seems to ‘refer to distraint of goods in the ware house; the distraint may be for one day, or till corroboration comes from the frontier.

Or refer to ‘distant in the toll house for three ghaṭikās, i.e., nālikās. namakṛte means:

“The name would appear to be that of the trader on the passport-vahanam etc. means ‘the carriage load is also confiscated… make a load pay ¼ th paṇa fine for every paṇa”.^[22]

“dhvajamūlopasthitasya pramāṇamarghaṃ ca vaidehakāḥ paṇyasya brayuḥ ‘etatpramāṇenārgheṇa paṇyamidaṃ kaḥ kreteti’ | triruddhoṣitamarthibhyo dadyāt | kretṛsaṅdharṣe mūlyavṛddhiḥ saśulkā kośaṃ gacchet |

“śulkabhayāt paṇyapramāṇaṃ mūlyaṃ vā hīnaṃ bruvatastadatiriktaṃ rājā haret | śulkamaṣṭaguṇaṃ vā dadyāt |” (2.21.7-11).^[23]

Means,

“Traders shall declare the quantity and price of the goods that have arrived at the foot of the flag, ‘who is willing to purchase these goods, so much in quantity, at this price?” When it has been thrice proclaimed, he should give it to those who have sought it. In case of competition among purchasers, the increase in price together with the duty shall go to the treasury. If for fear of duty a (trader) declares the quantity of the goods or the price to be less (than it actually is), the king shall confiscate that excess. Or the (trader) shall pay eight times the duty”.^[24]

“Imported goods were clearly sold at the gate. Meyer thinks that only confiscated goods were sold there. There is nothing to indicate this.”^[25]

The margin of expenditure i.e increased over the pre scheduled value for the buyer’s struggle, that exceeding amount should be submitted into the treasury including the certain taxes.

That merchant who announced the price value before the buyer’s struggle, that price will be accepted by him, excluding the exceeding value.

“tadeva niviṣṭapaṇyasya bhāṇḍasya hīnaprativarṇakenārghāpakarṣaṇe sārabhāṇḍasya phalgubhāṇḍena praticghādane ca kuryāt | pratikretṛbhayād vā paṇyamūlyādupari mūlyaṃ vardhayato mūlyavṛddhiṃ rājā hared, dviguṇaṃ vā śulkaṃ kuryāt | tadevāṣṭaguṇamadhyakṣasyā cchādayataḥ” | (2.21.12-14)^[26]

English version says—

“He should impose the same (penalty) in case of depreciation of price of a package containing goods by (showing) a sample of lower value and in case of concealment of goods of high value by goods of low value. Or, if through fear of a rival purchaser a (trader) increases the price beyond the (due) price of a commodity, the king shall receive the increase in price, or make the amount of duty double. The same (penalty) eightfold (shall be imposed) on the Superintendent concealing (the trader’s offences)”^[27]

Here the word “bhāṇda seems to refer to the container in which the goods (paṇya) are packed (niviṣṭa). It contains goods more precious than the supposed sample (prativarṇaka) carried out side the package’.

The word dviguṇaṃ va sulkam means,

“Apparently this option operated when the mulyavṛddhi amounted to less than the śulka, aṣṭaguṇam: eight times the mulyavṛddhi or the śulka, according to the two options”.^[28]

And the word chādayataḥ—according to śrimula commentary—

“vaidehakāparādhaṃ maitrīlañcagrahaṇādinā gopayataḥ”.^[29]

“tasmād vikrayaḥ paṇyānāṃ dhṛto mito gaṇito vā kāryaḥ, tarkaḥ phalgubhāṇḍānāmānugrahikāṇāṃ ca | dhvajamulamatikrāntānāṃ cākṛtaśulkāṇāṃ śulkādaṣṭaguno daṇḍaḥ | pathikotpathikāstad vidyuḥ |’ (2.21.15-17).^[30]

Means,

“Therefore, the sale of goods should be made by weighing, measuring or counting; an appraisal (of value should be made) of goods of small value and goods enjoying concessions. And for goods that have passed beyond the foot of the flag without the duty being paid, the fine is eight times the duty. Secrets agents operating on roads and in places without roads should find out such (evasion).”^[31]

If the goods of low value like coal etc. and the price value of the taxless or few tax oriented solts i.e. state concession goods are argued, the real value and stander of these things would be decided after the justice.

According to śrīmūlā commentrary:

“tarkaḥ idamiyat syāditi mānārghasambhāvanātmā kāryaḥ |”^[32]

The intruders in the guise of grass or fuelwood collectors or shepherds would to use the uncommon way or the unused way or path in the forest with the permission of the king.

They can secretly keep eyes on merchants whether they are crossing over the tax house, that will help them to be eyewitness at the time of merchant’s justice.

“tadaṣṭaguṇaśulkakāraṇaṃ atikramaṇaṃ vidyu anviṣya jānīyu |”

(As it is seen in the Kauṭilīyam Arthaśāstram edited by Manabendu Bandyopadhay, part-I p. 401).

The word anugrāhikāṇām means—

“This conveys the sense of what the state has decided to confer anugraha on, e.i. to grant concessions to. Here the word ‘Pathīka’, i.e., disguised as traders and utpathika’ i.e means disguised as shepherds wood cutters’ etc.,”^[33]

Here, goods which are non taxable have been discussed.

(śulkāpradānenaiva nāWyāni dravyāṇi, mithyābhāṣaṇe daṇḍaḥ)

“vaivāhikamanvāyanamaupāyanikaṃ yajñakṛtyaprasavanaimittikaṃ devajyācaulopanayanagodāna vratadīkṣaṇādiṣu kriyāviśeṣeṣu bhāṇḍamucchulkaṃ gacchet | anyathāvādinaḥ steyadaṇḍaḥ | kṛtaśuḍkenākṛtaśulkaṃ nirvāhayato dvitīyamekamudrayā bhittvā paṇyapuṭamapaharato vaidehakasya tacca tāvacca daṇḍaḥ | śulkasthanādū gomayapalālaṃ pramāṇaṃ kṛtvā'paharata uttamaḥ sāhasadaṇḍaḥ |” (2.21.18-21).^[34]

English version says—

“Goods intended for marriage, marriage-gifts accompanying the bride, goods intended as gifts, goods required on the occasion of a sacrifice or a ceremony or a birth and goods used in various rituals like worship of the gods, tonsure rite, initiation for Veda study, hair cutting rite consecration for a vow and so on, should go duty free. For a (person) making a false declaration (in this respect) the punishment for theft (shall be imposed). For the trader taking out a commodity for which duty has not been paid along with one for which duty has been paid, or carrying off a second (commodity) under one stamp after breaking open the package, forfeiture of the same and an equal amount as fine (shall be the punishment). For the (trader) carrying off (goods of high value) from the customs house after securing acceptance of cowdung (cakes) or straw as the basis (for calculating duty), the highest fine for violence (shall be the punishment)”^[35]

According to srīmūlā commentary anvāyanam means—

vivāhanantaraṃ “pariṇītāyā patigṛhaṃ gacchantyāḥ navavadhvā pitagṛhānnīyamānaṃ padārthajātam |”^[36]

The word aupāyanikam means according to srīmūlā commentary “upāyanamannasatrādyartha upahāraḥ tatprayojanakaṃ |”^[37]

Dvitīyam etc. means, bringing in another similar-looking package on the strength of a mudrā on one (dvitīya ckamudrayā) and breaking open a package on which duty is paid and inserting in it goods on which duty is not paid (bhitṭvā puṭam apaharataḥ)^[38]

According to srīmūlā commentary it means:

“ekasya paṇyavāsanasya mudrāpradarśanena tattulyarupamaparaṃ paṇyavāsanaṃ nirvāhayata ityaparaḥ”^[39]

The word pramānaṃkṛtvā i.e making a declaration about the goods.

According to srīmūlā commentary it means,

“gopurīṣaṃ dhānyastaṛbaṃ cātyantanispāradravyaṃ viśvāsapadamapadiśya tannigūhitaṃ sāradravyaṃ nayataḥ |”^[40]

Prohibited goods undertaken for import and export will be punishable.

(anirvāhyanayane daṇḍādaya)ḥ śastravarmakavacaloharathatnadhānyapaśūnāmanyatamamanirvāhyaṃ nirvāhayato yathāvaghuṣito daṇḍaḥ paṇyanāśaśca | teṣāmanyatamasyānayane bahirevocchulko vikrayaḥ |” (2.21.22-23)^[41]

Means,

“For the (trader) taking out any one of the unexportable articles viz., weapons, armours, coats of mail, metals, chariots, jewels, grains and cattle, there shall be a fine as proclaimed as well as loss of the goods. In case any one of these is brought in, its sale (shall be effected) duty-free outside (the city-gate) itself.^[42]

From the above text the word ‘anyatamam anirvāhyam means, the prohibition of the export of these goods is obviously for military and economic reasons. Nāśa is to the owner i. e, confiscation.’^[43]

According to srīmūlā commentary panyānaśa is—

‘nirvāhyamānaśastrādipaṇyahāniśca |’^[44]

“The word ‘anayana is import’.—ucchulka ‘duty free’, because these confer benefit on the country, or because the king is the purchaser of these goods.”^[45]

Frontier officers will collect road tax and will follow their duties.

[rājyasīmāntapālānaṃ | vetanaṃ tatakartavyāṇi kanicana ca]

“antapālaḥ sapādapaṇikāṃ vartanīṃ gṛhnīyāt paṇyavahanasya paṇikāmekakhurasya, paśūpanāmardhapaṇikāṃ, kṣudrapaśūnāṃ pādikām, aṃsabhārasya māṣikām | naṣṭāpahṛtaṃ ca pranividadhyāt | vaideśyaṃ sārthaṃ kṛtasāraphalgubhāṛḍavicayanamabhijñānaṃ mudrāṃ ca datvā preṣayedadhyakṣasya |” (2.21.24-26)^[46]

English version says—

“The frontier officer should charge a road cess of one paṇa and a quarter for a cart-load of goods, of one paṇa for a one-hoofed animal, of half a paṇa for cattle, of a quarter paṇa for small animals, of one māṣaka for a shoulder load. And he shall make good what is lost or stolen (on the way). He should send on to the superintendent a caravan from a foreign land after making an investigation as to goods of high and low value and giving them an indentity-pass and stamp (on the goods)”^[47]

From the above text we get the word vartanī. It means,

“a cess on traders for the use of roads. This itself involves the liability to protect and indemnify the trader for loss suffered on the way separate escort-charges are also though of, called ātivāhika.”^[48]

According to srīmūlā commentary—

“...abhijñānaṃ svahastalekhāṅkaṃ | mudrāṃ ca paṇyavāsanakaraṇīyāṃ dattvā | eṣa śulkādhyakṣaharaṇasya niṣedhopāyaḥ |”^[49]

(bhaṇḍanigūhana vāraṇopāyāḥ)

“vaidehakavyañjano vā sārthapramāṇaṃ rājñaḥ preṣayet | tena pradeśena rājā śulkādhyakṣasya sārthapramāṇamupadiśet sarvajñatvakhyāpanārtham | tataḥ sārthamadhyakṣo'bhigamya brūyāt “idamamuṣyāmuṣya ca sārabhāṇḍaṃ phalgubhāṇḍaṃ ca, na nigūhitavyam, eṣa rājñaḥ prabhāvaḥ” iti | niguhataḥ phalagubhāṇḍaṃ śulkāṣṭaguṇo daṇḍaḥ, sārabhāṇḍaṃ sarvāpahāraḥ |”(2.21.27). 89

English version says—

“Or, a secret agent appearing as a trader should communicate to the king the size of the caravan. In accordance with that information, the king should tell the Collector of Customs about the size of the caravan, in order to make his omniscience known. Then the Collector, on meeting the caravan should say, “These are goods of high and low value belonging to such and such a merchant. It should not be concealed. This is the kings power. For one concealing goods of low value the fine shall be eight times the duty, (for concealing) goods of high value, confiscation of everything (shall be the punishment).”^[50]

King could be aware of the information of the merchants through the disguised spies, without informing others about this he acquints or alert the collector of customs like omniscientary—

“sarvajño rājā parokṣamapi sārthavāha pramāṇaṃ dityadṛṣṭyā jānātīti khyāpanārtham |”^[51]

Realising this the Collectors of the Customs respectful to the king.

Perhaps for the respectfulness of the Collector of customs Kauṭilya suggested about the omniscience of the king.

(nāśanayogyāḥ pararājyāta anāneyāḥ śuklarahitāśca pararājyāt ānītāḥ padārthāḥ |)

“rāṣṭrapīḍākaraṃ bhāṇḍamucchindhādaphalaṃ ca yat |
mahopakāramucchulkaṃ kuyād bījaṃ ca durlabham |” (2.21.31)^[52]

Mears,

“He should cut out goods that are harmful to the country and that are worthless. He should make goods that are highly beneficial duty-free, also seeds that are rare.”^[53]

Here the word ucchindyāt means,

“This may impiy prohibition of import or destruction when imported, mahopakāram means, “an object that is highly beneficial only if they are rare.”^[54]

According to Kauṭilya’s Arthaśāstra which deals with the system of taxation in a real elaborate and planned manner. The Arthaśāstra of Kauṭilya perhaps furnishes in greatest detail the sphere of financial management of ancient India. The sources of income of the king, which Kauṭilya calls Āyaśarira’ has been classified into several heads for administrative convenience.

In the Arthaśāstra the samāhartā or collector collects revenue from different sources such as durga, rāṣṭra, khani,setu, vraja, and vaṇikapatha.

“samāhartā durgaṃ rāṣṭraṃ khaniṃ setuṃ vanaṃ vrajaṃ vaṇikapathaṃ cāvekṣeta |” (2.6.1).^[55]

Means,

“The Administrator should attend to the fort, the country, mines irrigation works, forests, herds and trade-routes (as the main source of revenue)”.^[56]

Here “durga etc. are the principal source of revenue.

Avekṣeta i.e fix after due consideration”^[57]. The term durga has been further analysed to mean twenty two components.

“śulkaṃ daṇḍaḥ pautavaṃ nāgariko lakṣaṇādhyakṣo mudrādhyakṣaḥ surā sūnā sūtraṃ tailaṃ ghṛta kṣāraṃ sauvarṇikaḥ paṇya—saṃstha veśyā dyūtaṃ vāstukaṃ kāruśilpigaṇo devatādhyakṣo dvāra bāhirikādeyaṃ ca durgam |”(2.6.2).^[58]

English version says—

“Custom-duties, fines, standardization of weights and measures, the city-superintendent, the mint master, the superintendent of passports, spirituous liquors, animal slaughter, yarn, oil, ghee, sugars, the goldsmith, the market establishment, prostitutes, gambling, buildings, the group of artisans and artists, the temple-superintendent, and what is to be received at the gates and from outsiders, these constitute (the source of income called) ‘fort’:^[59]

Here the word “pautavam [pautava]”—Tthis evidently refers to prices of weights and measures, inspection fees etc. nāgarika: this can only refer to fines imposed by this officer; no revenue seems to come through him.

Surā, sūnā, sūtra [sūtram], i.e. income derived through officers as described in 2.25, 2.26 nd 2.23 respectively. These are mostly products of state activity’.

‘Tailaṃ ghṛtaṃ kṣāraḥ: these apparently are produced in state stores, and income from their sale seems meant.’

Sauvarṇika [sauvarṇikaḥ]: profit from the working of the state goldsmithy is meant.

‘Paṇyasaṃsthā i.e income received from the activity of the

paṇyādhyakṣa of 2.16 and the saṃsthādhyakṣa of 4.2.

‘Veśyā: obviously income from the department of the gaṇikādhyakṣa (2.27) is to be understood.

‘Vāstuka [vāstukam]: imposts mentioned in chapters 3.8.9 appear to be meant. A ‘house tax’ is possible, but there is no specific reference to it elsewhere in the text. According to U. N Ghoshal, it is ‘ground-rent’ (revenue system etc. p.97)’.

Kāruśilpigaṇa [kāruśilpigaṇaḥ ]: a tax on crafts and professions may be understood, though this too is not specifically laid down anywhere’.

Devatādhyakṣa [devatādhyakṣa]: This officer’s duties are not laid down anywhere. Apparently he supervised the management of temples and levied fees’ …. Temples owned by the state would be a direct source of income.

‘Dvārabāhirikādeyam: two sideas are meant dvārādeya and bāhirikādeya. The former is mentioned in 2.22.8, the latter is probably a reference to taxes mentioned in 2.4.32. bāhirikā as in 2.4.32 above.

Dvāraṃ bāhirikādeyam, the meaning would apparently be the same but 2.22.8 might seen to favour the former reading.”^[60]

According to śrīmulā commentary—dvārabāhikādeyam means—

“dvāravāhirikasamvandhi ādeyaṃ purādidvārapālairbhṛtitvena grāhyaṃ vāhirikebhyaḥ naṭanartakādibhyaḥrājñā grāhyaṃ ceti yāvat |”^[61]

Here bāhirikā means actors, dancers, etc.

Tax should collected from the gateman of town gates and from actors and dancers.

Rāṣṭra as a source of income has been defined by Kauṭilya in the following way.

“sītā bhāgo valiḥ karo vaṇik nadī—pālastaro nāvaḥ pattanaṃ vivītaṃ vartanī rajjūścorarajjuśca rāṣṭram |” (2.6.3).^[62]

“Agricultural produce, share, tribute, tax, the trader, the river-guard the ferry, ships, the port, pastures, road-cess, land-survey and thief catching,—these constitute ‘country’^[63].

Here ‘Sitā’ is income from crown lands (2.24). worked by the sitādhyakṣa bhāgaḥ (2.24) ‘share’ of produce from private lands usually one sixth (2.15.3). baliḥ is apparently an occasional levy such as those mentioned in 5.2.-karaḥ appears to be a tax paid in cash. It is rather surprising that bali and Kara do not figure under durga as well.—nadīpalaḥ : such a guard is not mentioned elsewhere. Apparently fines for unauthorised crossing of rivers forming boundaries between states are to be understood.’ taraḥ crossing of rivers.

‘nāva [nāvaḥ]’: hire for state boats seems meant.

Pattana [pattanam]: evidently port dues are meant.—vivītam: 2.34.12 mentions some of these sources of income. ….. rajuś corarajjuś ca: income from the village for fixing measurements (grāmaparijñāpramāṇam) and income for finding out thieves by the pradeṣṭ’ s activity.^[64]

Kauṭilya lays down twelve components of khaṇi another source of income—

“suvarṇa—rajata—vajra—maṇi—muktā—pravālaśaṅkha—loha—lavaṇa bhūmi—prastara—rasa—dhatavaḥ khaniḥ |” (2.6.4).^[65]

It means,

‘Gold, silver, diamonds, gems, pearls, corals, conch-shells, metals, salt and ores derived from the earth, rocks and liquids,-these constitute ‘mines’.^[66]

‘Here loha refers to metals other than gold and silver.’^[67]

Setu or irrigation works provided six components of source of income.

“puṣpaphalavāṭa—ṣaṇḍa —kedāra— mūlavāpāḥ setu: |” (2.6.5)^[68]

“Flower-gardens, fruit orchards, vegetasble gardens, wet crop fields, and sowings of roots,—these constitute irrigation works.”^[69]

Here “mūlavāpa”: sowing by root is distinguished from sowing by seed or stem. Ginger, turmeric etc. are meant. (Where seed are sown in fields).

‘Having hollws (āvāpa in the sense of ālavāla) for holding water at the base.’ Breloer (kst, III, 169) construes mūlavāpa in the sense of ‘plantings’ with puṣpa and phala, these two plantings being then connected with three kinds of fields vāṭa ‘garden’, ṣaṇḍa ‘culture’ and kedāra ‘water culture’ Thus he arrives at six kinds of setu.”^[70]

Vana or forest provided four components of source of income.

“paśumṛgadravyahastivanaparigraho vanam |”(2.6.6).^[71]

“Enclosures for beasts, deer-parks, forests for produce and elephant forests,—these constitute ‘forests’.”^[72]

Here paśumṛga means—“domesticated animals and forest animals.”^[73]

Vraja or herds provided eight components of source of income.

“gomahiṣam ajāvikaṃ kharoṣṭram aśvāścataraṃ ca vrajaḥ |” (2.6.7).^[74]

‘Cows and buffaloes, goats and sheep donkeys and camels and horses and mules,-these constitute hards’.”^[75]

Vanikapatha or trade routes provided two components of source of income.

“sthalapatho vāri—pathaśca vaṇik pathaḥ ityayaśarīrama |” (2.6.8-9).^[76]

‘The land route and the water route constitute trade-routes.’

This is the corpus of income.^[77]

It is discussed above sixty seven components of source of income which are included in fort, country, mines, irrigation works, forests, herds and trade routes.

There are seven ways of source of income are called heads of income. These are—

“mūlyaṃ bhāgo vyājī parighaḥ klṛptaṃrupikamatyayaścāyamukham |”(6.2.10)^[78]

Means,

“Price, share, surcharge, monopoly tax, fixed tax, manufacturing charge and penalty constituter the heads of income.”^[79]

Here the word “vyājī is a sort of exess in measure or weigh charged when goods are received in the treasury or stores. It amounts to a surcharge of 5% on every transaction.”

“Parigha “either money for ferrying (ātaradravya) or begging and receiving food. Klptam is a fixed tax ‘to be paid by a village collectively either in cash or kind’

Rūpika [rūpikam] a manufacturing charge of 8%.

‘Atyaya [atyayaḥ]’: this would ordinarily include daṇḍa. But in 2.12.35 both are separately mentioned. Perhaps there atyaya is restricted to penalty for violation of state regulations, while daṇḍa is fine imposed by Judges and magistrates only—āyamukha [āyamukham] refers to heads under which revenue is classified.”^[80]

1. It is said in the Manusaṃhitā that king should collect taxes from his subjects of the state through ministers etc. He said about various posts of the tax collector but did not discussed vividly about their duties.

In the Arthaśāstra it is discussed about various departments and appointment of appropriate officers with their duties and responsibilities and it is also said that the prescribed tax should be collected in a particular tax house.

2. In Manusaṃhitā (chapter VIII, 130-133 No verse.) it is said about the assessment of tax.

In the Arthaśāstra (2.22) it is indicated clearly about the assessment of tax. So, it can be realised that mentality of Kauṭilya is same as Manu.

3. Tax is not classified in the Manusaṃhitā.

But classification of tax is described in the Arthaśāstra. Here merchandise tax is classified into three categories i.e. tax on country side goods, tax on city side goods and tax on foreign goods.

Further tax of merchandise is again classified into two categories i,e. import and export of goods.

4. In the Manusaṃhitā humanty of the king is clearly indicated. It is said in the verses of the Seventh chapter (7.128,129) that the king should collect taxes in such a way from his subjects that both king and his subjects would not be sufferers.

In the Arthaśāstra only rules and regulations are explained. Though the humanism of the king is not clearly stated there the various taxes are prescribed from different aspects.

5. In the Manusaṃhitā (chapter VII, verse No. 130-132) tax is fixed on profit value of commercial products. Again in verse no 130 tax rate is differentiated according to the fertility of land and productivity of labour.

But, in the Arthaśāstra tax is fixed on actual merchandise goods not on the profit value like the Manusaṃhitā.

6. In the Manusaṃhitā it is said that except Brāhmaṇas all are liable to pay tax. Those who are unable to pay tax on money can pay with kind or their physical labour once in a month (7.138). This physical labour will be treated as payable tax to the king.

But in the Arthaśāstra this topic is also discussed. Infact only importance is given to rules and regulations. Here rules and regulations have to be followed properly otherwise it is punishable (2.21).

7. Manu said, fixation and collection of the tax should be according to the rules and regulations asong with the importance on humanity. It seems that there was no social complexity as the period of Arthaśāstra.

In the Arthaśāstra, fixation and collection of tax is like the Manusaṃhitā. But, there the rules and regulations were strictly followed as per plans. Probably the social complexity at the time of the Arthaśāstra increased gradually. Therefore to run smoothly the state’s administration and to protect the subjects the necessity of discipline and planning is inevitable.

A trader who breaks the rules of taxation would be punishable. This opinion is same in both the Manusaṃhitā (8/400) and the Arthaśāstra.

8. Money is required to protect the subjects, to protect the kingdom from the attacking enemies and at the time of war. So, collecting tax from the subjects is one of the source of that required money.

Al the time of the Manusaṃhitā there was a good relationship between king and his subjects while collecting tax. The rules were followed properly. In this period there was good cordial relation among the king and his subjects. The subjects of the kingdom showed their own allegiance to the king as like as the son shows allegiance towards his father.

The Arthaśāstra of Kauṭilya was written following the Manusaṃhitā. So, the influence of the Manusaṃhitā is reflected in the Arthaśāstra. The matter which are described in the Manusaṃhitā in short are explained in the Arthaśāstra vastly and systematically.

Footnotes and references:

[1]:

loc.cit.

[2]:

ibid., part -II, pp. 144-145.

[3]:

loc cit., (foot note).

[4]:

ibid., part-II, pp. 144-145.

[5]:

ibid., part-II, p.145.

[6]:

ibid., part-I, p.74.

[7]:

ibid., part-II, p.145.

[8]:

T.G. Sastri: The Arthaśāstra of Kauṭilya, part-I, p. 303.

[9]:

R. P. Kangle: Op.cit., part -II, p. 145(foot note).

[10]:

ibid., part-I, p.75.

[11]:

ibid., part-II, pp.145.146.

[12]:

ibid., p. 146.

[13]:

ibid., part-I, p. 75.

[14]:

ibid., part-II, p. 146.

[15]:

loc.cit., (foot note).

[16]:

ibid., part-I, p. 73.

[17]:

ibid., part-II, pp. 141-142.

[18]:

ibid., part-II, p. 142 (foot note).

[19]:

T. G. Shastri: Op. cit., part-I, p. 295.

[20]:

R.P. Kangle: Op. cit., part-I, p.73.

[21]:

ibid., part-II, p. 142.

[22]:

loc. cit., (foot note).

[23]:

ibid., part–I, p.73.

[24]:

ibid., Part-II, p.142.

[25]:

loc.cit., (foot note).

[26]:

ibid., part-I, p.73.

[27]:

ibid., part-II, pp. 142-143.

[28]:

loc.cit. (foot note).

[29]:

T.G. Shastri: Op. cit., part-I, p.297.

[30]:

R.P. Kangle: Op.cit., part-I,p.73.

[31]:

ibid., part-II, p. 143.

[32]:

T. G. Shastri: Op.cit., part-I, p.297.

[33]:

R.P. Kangle: Op,cit., Part-II, p.143 (foot note).

[34]:

ibid., part-I, p.73.

[35]:

ibid., part-II, p. 143.

[36]:

T.G. Shastri: Op. cit., part–I, p.298.

[37]:

loc.cit.

[38]:

R.P. Kangle: Op.cit., part-II, p. 143. (foot note).

[39]:

T.G. Shastri: Op cit., part-1, p. 298.

[40]:

ibid., part-I, p-299.

[41]:

R.P. Kangle: Op. cit., part-I, p.74.

[42]:

ibid., part-II, pp. 143-144.

[43]:

ibid., part-II, p. 143 (foot note).

[44]:

T.G. Shastri: Op. cit., part–I, p. 299.

[45]:

R.P. Kangle: Op. cit., part-II, pp. 143-144. (foot note).

[46]:

ibid., part-I, p.74.

[47]:

ibid., part-II, p.144.

[48]:

ibid., Part-II, p.144. (foot note).

[49]:

T.G. Shastri: Op. cit., part–I, p-300.

[50]:

ibid., Part-II, p.144.

[51]:

T.G. Shastri: Op cit., part-I, p.300.

[52]:

R.P. Kangle: Op.cit., part-I, p.74.

[53]:

ibid., part-II, p.144.

[54]:

loc.cit. (foot note).

[55]:

ibid., part-I, p.41.

[56]:

ibid., part-II, p.75.

[57]:

loc. cit., (foot note).

[58]:

ibid., part–I, p.41.

[59]:

ibid., part–II, p. 75.

[60]:

ibid., part–II, pp. 75-76. (foot note).

[61]:

T.G. Shastri: Op. cit., part-I, p. 150.

[62]:

R. P. Kangle: Op. cit., part-I, p.41.

[63]:

ibid., part–II, p. 76.

[64]:

loc.cit. (foot note).

[65]:

ibid., part–I, p.41.

[66]:

ibid., part–II, p.76.

[67]:

loc.cit.(foot note).

[68]:

ibid., part–I, p. 41.

[69]:

ibid., part–II, p.76.

[70]:

loc.cit.(foot note).

[71]:

ibid., part–I, p.41.

[72]:

ibid., part–II, p.76.

[73]:

loc. cit. (foot note).

[74]:

ibid., part–I, p.41.

[75]:

ibid., part–II, p.76.

[76]:

ibid., part-I, p.41.

[77]:

ibid., part-II, p-77.

[78]:

ibid., part-I, p.41.

[79]:

ibid., part-II, p.77.

[80]:

loc.cit. (foot note).