Taxation has been a critical aspect of governance throughout history, providing the necessary resources for administration, defense, and development. In India, from ancient times to the early modern period, various kingdoms and empires developed distinct systems of taxation. This article explores the tax rates and mechanisms employed by some of the major Indian polities, highlighting how these systems evolved over time.
Maurya Empire (c. 322–185 BCE)
The Maurya Empire, under rulers like Chandragupta Maurya and Ashoka, is one of the earliest and most significant examples of a centralized Indian state. The Arthashastra, attributed to Chanakya (Kautilya), provides a detailed account of the Mauryan administrative system, including taxation.
- Land Revenue: The primary source of income for the Mauryan state was the land tax, known as bhaga. This tax was typically one-sixth (approximately 16.67%) of the agricultural produce.
- Trade and Commerce: Taxes on trade, customs duties, and tolls were also significant. A tax of 20% was levied on goods manufactured within the empire.
- Other Taxes: There were various other taxes, including those on forest produce, mining, and professional services.
Satavahana Dynasty (c. 1st century BCE – 3rd century CE)
The Satavahana Dynasty, which ruled parts of central and southern India, had a significant impact on the region’s economic and cultural landscape.
- Land Revenue: The land tax, generally around one-sixth (16.67%) of the produce, was a major source of revenue.
- Trade and Commerce: Taxes on trade and transit duties were important, reflecting the Satavahanas’ control over key trade routes.
Gupta Empire (c. 320–550 CE)
The Gupta Empire is often regarded as a golden age in Indian history, marked by prosperity and cultural achievements. The taxation system during this period was less centralized compared to the Mauryas but still crucial for the state’s functioning.
- Land Revenue: The land tax, known as bhoga, varied but was generally around one-fourth (25%) of the produce.
- Other Taxes: Taxes on irrigation, trade, and craft production were also important. The Guptas levied taxes on professions and guilds, reflecting a more diversified economy.
Chalukya Dynasty (c. 6th–12th centuries CE)
The Chalukya Dynasty, known for its patronage of art and architecture, ruled large parts of southern and central India.
- Land Revenue: The land tax, usually one-sixth to one-fourth (16.67%-25%) of the produce, was a major source of revenue.
- Trade and Commerce: Taxes on trade, market dues, and transit duties were significant.
Pala Dynasty (c. 8th–12th centuries CE)
The Pala Dynasty ruled over the Bengal and Bihar regions and were known for their support of Buddhism.
- Land Revenue: The land tax, generally one-sixth (16.67%) of the produce, was the primary revenue source.
- Other Taxes: Taxes on trade, professions, and religious establishments were also prevalent.
Chola Empire (c. 9th–13th centuries CE)
The Chola Empire, renowned for its maritime trade and cultural patronage, had a well-organized taxation system that supported its expansive activities.
- Land Revenue: The Cholas collected land tax, which was typically one-third (33%) of the produce. This revenue was crucial for maintaining their elaborate irrigation systems.
- Commercial Taxes: Taxes on trade and markets were significant, especially given the Cholas’ extensive trade networks.
- Other Sources: The Cholas also imposed taxes on weavers, artisans, and other professionals.
Rajput Kingdoms (c. 8th–15th centuries CE)
The Rajput kingdoms, known for their warrior ethos and chivalric traditions, ruled over various parts of north and central India.
- Land Revenue: The land tax generally varied from one-fourth to one-third (25%-33%) of the produce.
- Other Taxes: Taxes on trade, crafts, and pilgrimage sites were also common.
Rashtrakuta Dynasty (c. 8th–10th centuries CE)
The Rashtrakutas, who ruled over the Deccan region, were known for their military prowess and contributions to art and culture.
- Land Revenue: The land tax, typically one-sixth to one-fourth (16.67%-25%) of the produce, was the main source of income.
- Commercial Taxes: Taxes on trade, market dues, and transit duties were important.
Delhi Sultanate (1206–1526 CE)
The Delhi Sultanate, which saw the establishment of Islamic rule in North India, introduced several changes in the taxation system, aligning it with Islamic fiscal practices.
- Land Revenue: The land tax, called kharaj, ranged from one-fifth to one-half (20% to 50%) of the produce. For instance, Alauddin Khalji changed tax policies, raising agriculture taxes from 20% to 50% (payable in grain and agricultural produce), eliminating payments and commissions on taxes collected by local chiefs.
- Jizya: A poll tax levied on non-Muslims, known as jizya, was an important source of revenue.
- Commercial Taxes: Taxes on trade, market tolls, and other commercial activities were also prevalent.
Was this taxation Islamic? In Islamic tradition, the rate of tax on agricultural produce is known as ushr (عشر), which literally means “tenth.” The tax rate is 10% (one-tenth) of the produce. However, the ushr is applicable only to Muslim landowners, whereas non-Muslims in an Islamic state would typically pay kharaj (a land tax) and possibly jizya (a poll tax).
The rates of Kharaj generally ranged from one-tenth (10%) to one-half (50%) of the produce, depending on the circumstances of the peasants and the decisions of the governing authorities.
The rates of jizya were also not uniform, as Islamic scripture gave no fixed limits to the tax. By the time of Prophet Mohammed, the jiyza rate was one dinar per year imposed on male dhimmis in Medina, Mecca, Khaibar, Yemen, and Nejran. According to Muhammad Hamidullah, the rate was ten dirhams per year “in the time of the Prophet”, but this amounted to only “the expenses of an average family for ten days”.
Abu ‘Ubayd insists that the dhimmis must not be burdened beyond their capacity, nor must they be caused to suffer.
The 13th century hadith scholar and Shafi’ite jurist Al-Nawawī, comments on those who would impose a humiliation along with the paying of the jizya, stating, “As for this aforementioned practice, I know of no sound support for it in this respect, and it is only mentioned by the scholars of Khurasan. The majority of scholars say that the jizya is to be taken with gentleness, as one would receive a debt. The reliably correct opinion is that this practice is invalid and those who devised it should be refuted. It is not related that the Prophet or any of the rightly-guided caliphs did any such thing when collecting the jizya.”
Ibn Qudamah also rejected this practice and noted that Muhammad and the Rashidun caliphs encouraged that jizya be collected with gentleness and kindness.
However, Al-Zamakhshari, a Mu’tazili (praised as rationalists by non-Muslims) author of one of the standard commentaries on the Qur’an, said that “the Jizyah shall be taken from them with belittlement and humiliation. The dhimmi shall come in person, walking not riding. When he pays, he shall stand, while the tax collector sits. The collector shall seize him by the scruff of the neck, shake him, and say “Pay the Jizyah!” and when he pays it he shall be slapped on the nape of the neck.”
Vijayanagara Empire (c. 1336–1646 CE)
The Vijayanagara Empire, a major South Indian power, is known for its prosperous economy and vibrant culture.
- Land Revenue: The land tax, generally one-sixth (16.67%) of the produce, was a major source of revenue.
- Other Taxes: Taxes on trade, crafts, and temples were significant.
Sur Empire (1540–1556 CE)
The Sur Empire, established by Sher Shah Suri, is noted for its administrative reforms, including a well-organized taxation system.
- Land Revenue: The land tax, based on the measurement of land and crop production, was typically one-third (33%) of the produce.
- Other Taxes: Taxes on trade, market dues, and transit duties were important.
Mughal Empire (1526–1857 CE)
The Mughal Empire, under rulers like Akbar, Jahangir, and Aurangzeb, developed a sophisticated and efficient system of taxation, known for its detailed revenue administration.
- Land Revenue: The land tax system, known as zabt under Akbar’s administration, was meticulously documented in the Ain-i-Akbari. The rate generally varied from one-third to one-half (33%-50%) of the produce, depending on the fertility of the land.
- Jizya: The Mughal rulers, particularly Aurangzeb, reimposed the jizya on non-Muslims.
- Trade and Commerce: Taxes on trade, customs duties, and market tolls were significant, reflecting the Mughal emphasis on trade.
Maratha Empire (c. 1674–1818 CE)
The Maratha Empire, known for its military campaigns and administrative acumen, developed a unique taxation system.
- Land Revenue: The land tax, known as chauth, was one-fourth (25%) of the produce. Another tax, sardeshmukhi, was an additional 10% levy.
- Other Taxes: Taxes on trade, transit duties, and professions were significant.
Sikh Empire (1799–1849 CE)
The Sikh Empire, founded by Maharaja Ranjit Singh, established a well-organized administration in Punjab.
- Land Revenue: The land tax was generally one-third (33%) of the produce.
- Other Taxes: Taxes on trade, crafts, and urban properties were important.
Lodhi Dynasty (1451–1526 CE)
The Lodhi Dynasty, the last ruling family of the Delhi Sultanate before the Mughals, continued many existing tax practices while making some modifications.
- Land Revenue: The land tax, called kharaj, was generally one-third to one-half (33%-50%) of the produce.
- Other Taxes: Taxes on trade, market tolls, and non-Muslim populations (jizya) were also prevalent.
Conclusion
The taxation systems of Indian kingdoms and empires were crucial to their administrative and economic stability. These systems evolved to meet the changing needs of the state and its people, influenced by cultural, religious, and economic factors. From the Mauryas’ early centralization to the Mughals’ sophisticated administration, the history of taxation in India is a testament to the ingenuity and adaptability of its rulers.