Revenue generation in ancient India played a critical role in the socio-economic development of the state. A significant portion of this revenue was derived from agricultural production, particularly in villages, where skilled Brahmins were assigned a share for their maintenance. If their share was minimal, they were often exempted from taxation—a practice highlighted in various Smritis. However, perspectives varied; the Mahabharata suggests that Brahmins in lucrative positions were still required to fulfil tax obligations.
In cases
where Brahmana landowners failed to meet government dues, their lands could be
sold. Additionally, the Brahmana recipients of agrahara villages faced interest
payments on delayed land tax. The state adopted a strict approach, selling the
shares of defaulters after a three-month grace period.
Temples
also contributed to state revenue, especially those owning extensive lands.
While larger temples paid full taxes, smaller ones sometimes faced only minimal
quit rents. Some temples opted to sell portions of their land to satisfy
government dues, often paying a sixth of their agricultural produce in taxes.
Trade and
industry taxes represented another crucial revenue source. Traders faced octroi
duties on imported goods, with rates varying by commodity. According to ancient
texts, duties on items like fuel, meat, and leather were recommended at 4% to
16%, while higher tariffs were imposed on luxury goods like silk and wine.
Tariffs could differ significantly across provinces, reflecting regional
economic policies. Notably, items for religious or ceremonial purposes were
typically exempted from these duties.
Other
revenue streams included ferry fees levied on passengers and goods, as well as
a shop tax, particularly in the Deccan under Yadava rule. Such comprehensive
taxation systems underscore the sophistication of ancient Indian governance and
its efforts to balance economic needs with social structures.
