Economics of Kautiliya Shukra and Brihaspati.pmd

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Details Sravana Asadha Total 1 2 ... 15 1 ... 30 1 ... 30 354 Place Time of accounting Date and time of receipt Accounting officer Details of current year Amount received Paid by Ordered by Received by Accountant Table 6.4.Possible Income Account Note- 1= First day of bright fortnight, 1 = First day of dark fortnight, 15= Full moon day, 30= Blue moon day Source: Rangrajan, 1992 : 277 86 Taxation Principles The theory that the taxes were wages for protection was so in gained in the constitution that even partial failure of protection was deemed to entitle the subject claim refund of wages in proportion to the loss and those claims as we have actual payment. The subject through that the servant king was not fulfilling his obligation. He thought that the compact was not fully kept and he threatened as the Arthashastra says to migrate to the enemy country, in other words, the subject threatened to transfer allegiance. The Mahabharata says the same thing when it sanctions the abandonment of the king who fails to protect. According to Mahbharata, 'He is like a ship which leaks that is dangerous to remain with and he is like the barber who wishes to go to the forest evidently to become an ascetic. The barber has left his clientele and master and broken his contract of service. He is fit to be given up and another barber is to be appointed to the household'. (Jayasawal, 1978:319-21) Similarly the king who failed in his duty was worthless fit to be given up. The relation between the king and the subject is proved to have ended by the very fact of the formers incapacity. The ties of allegiance is deemed dissolved the moment the king failed to fulfill this duty of protect action and the subject was free to employ another servant master instead. This was a natural corollary to the theory of taxation and the king’s legal position.(ibid) The mainstay of revenue was the kings’ fixed bhaga or the share of produce of agriculture. His share in merchandise sold in the market was one tenth or so according to circumstances.(Manusmriti, 7.130-132, Gautam-smriti 10, 24-27. Vasistha-smriti, 21.26- 27, Apastamba 2.20,26-29, Vishnu-smriti 3, 20-25, Boudhayana, 1.1018.1 cited in Jayasawal, 1978) 87
There were however some other sources of revenue which are at present called excise and customs; these are called in ancient books as shulk. In the regulation of these the king had a somewhat free hand. The later law books attempted even to regulate these by fixed laws. Yet they could not exhaust the list ad a greedy or needy sovereign could find some loop hole. The Nandas are accused to have taxed hides or furs. Evidently these articles had not been taxed before. There was a vast trade in skins or furs between the Magadha Empire and the Himalayan countries as the Arthashastra (Kautilya's Arthashastra, 11.2) proves. These imports when taxed by the predecessors of Chandragupta gave rise to accusations of greed. Evidently it was with reference to such occasions and opportunities and the realization of the bhaga in general that cannons of taxation were evolved and settled. The general principles of taxation in ancient books are- 1. In taxation the king should not by greediness destroy his own foundations as well as those of others. 2 (Mahabharata, Shanti Parva 87.18) 2. Subjects may be taxed in a way that they may remain strong to heart future burdens and if necessary heavier ones. If the calf is permitted to suck it grows strong. O bharata, and can bear heavy weight and pain. The king should milch taxes keeping the above principle in view. Over milching is to weaken the calf and consequently harms the milcher himself. (ibid, 87.20-21) 3. It is not the heavily taxed realm which executes great deeds but the moderately taxed one, whose ruler not sacrificing the power of defense manages administration economically. The subjects opposed that king who is extravagant in administration (eating too much). (ibid, 41.22) 88 4. The great principle emphasized is that taxation should be such that it may not be felt by the subject. The ruler should act like a bee which collects honey without causing pain to the plant. (ibid,87.89) 5. In raising taxes higher it should be done little by little when the realm’s prosperity is increasing. The process must be mild so that the realm might not turn restive. 3 (ibid, 88.4) 6. Taxes should be levied in proper form. They should never be realized by a proper form. They should never be realized by a painful mode, milch the cow but do not bore the udders4 . (ibid,88.4) In Taxing Imports For imports ancient economists have propounded some fundamental principles. These principles are described as follows- 1. Sales (price realized), purchases (capital employed), distance traveled cost of importing, and the total cost also the risks incurred by the merchant should be fully considered. 5 (Manu-smriti, 7.127) 2. Imports harmful to the state and luxuries (fruitless) are to be discouraged by taxation. 6 (Kautilya's Arthashastra, 1967, 2.21) 3. Beneficial imports should be made free of imports duties. 4. These articles which are rare in the country and those which would be seen for future production should be allowed in free. 5. Certain commodities should not be exported while their imports are to be encouraged by not being taxed at all. They were for instance- (a). Weapons and armours (b). Metals (c). Chariots 89
Page 1 and 2: CHAPTER ONE INTRODUCTION Hillebrand
Page 3 and 4: was 8800 but at present it consists
Page 5 and 6: view point of modern economics foll
Page 7 and 8: Painna, Mula Sutta, Nandi Sutta and
Page 9 and 10: Kautilya's Definition- The definiti
Page 11 and 12: subject matter of Econmics. Some ot
Page 13 and 14: 24. A given statement that is to be
Page 15 and 16: the control, both his subjects and
Page 17 and 18: supervision were clearly to be supp
Page 19 and 20: He opines that Shali (winter season
Page 21 and 22: only 20 milch cows is given to one
Page 23 and 24: fishes in a very small pond or the
Page 25 and 26: connection that state had framed tr
Page 27 and 28: Regulation of Trade and Protection
Page 29 and 30: judged through the process prescrib
Page 31 and 32: Notes Superintendent of Market was
Page 33 and 34: high. I think it unlikely that anyo
Page 35 and 36: glut in the market in the case of c
Page 37 and 38: situation, Market Price = Normal pr
Page 39 and 40: Introduction CHAPTER SIX GOVERNMENT
Page 41 and 42: h. Monopoly tax i. Royalty j. Taxes
Page 43: words, 'Fifteen days and nights mak
Page 47 and 48: CHAPTER SEVEN CONCLUSION Kautilya a
Page 49 and 50: follows the price policy explained
Page 51 and 52: and kam helps in selecting the best
Page 53 and 54: Bokare, M G.2009.Hindu Economics, P
Page 55 and 56: Shukra-niti.1987.translated by D B
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Page 59 and 60: CONTENT Chapter 1: Introduction 1 C

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