Changes

The Shukraniti states that tax should not be charged on capital. It deters the ruler from taxing sellers who get value less than or equal to the value of the product. It emphasizes that tax should be charged after determining the profits of the businessman.<ref name=":0" /> <blockquote>शुल्कं मूल्याविरोधकम् । न हीनसममूल्याद्धि शुल्कं विक्रेतृतो हरेत् ।।१०७।। लाभं दृष्ट्वा हरेच्छुल्कं क्रेतृतश्च सदा नृपः ।...।।१०८।।<ref name=":5" />

The Shukraniti states that tax should not be charged on capital. It deters the ruler from taxing sellers who get value less than or equal to the value of the product. It emphasizes that tax should be charged after determining the profits of the businessman.<ref name=":0" /> <blockquote>शुल्कं मूल्याविरोधकम् । न हीनसममूल्याद्धि शुल्कं विक्रेतृतो हरेत् ।।१०७।। लाभं दृष्ट्वा हरेच्छुल्कं क्रेतृतश्च सदा नृपः ।...।।१०८।।<ref name=":5" />

śulkaṁ mūlyāvirodhakam । na hīnasamamūlyāddhi śulkaṁ vikretr̥to haret ।।107।। lābhaṁ dr̥ṣṭvā harecchulkaṁ kretr̥taśca sadā nr̥paḥ ।...।।108।।</blockquote>With regards to farmers, the Shukraniti advises the ruler to first measure the agricultural land and classify its producing capacity as high, moderate or low before fixing the tax amount. It specifies that a ruler should tax the farmer in a way that he is not at loss.<ref name=":6">B.D.Basu (1914), The Sacred Books of the Hindus ([https://archive.org/details/Sukra_Niti/page/n152/mode/1up?view=theater Vol.8 The Sukraniti]), Allahabad: The Panini Office.</ref><blockquote>बहुमध्याल्पफलितां भुवं मानमितां सदा ।।१०८।। ज्ञात्वा पूर्वं भागमिच्छुः पश्चाद्भागं विकल्पयेत् । हरेच्च कर्षकाद्भागं यथा नष्टो भवेन्न सः ।।१०९।।<ref name=":5" />

śulkaṁ mūlyāvirodhakam । na hīnasamamūlyāddhi śulkaṁ vikretr̥to haret ।।107।। lābhaṁ dr̥ṣṭvā harecchulkaṁ kretr̥taśca sadā nr̥paḥ ।...।।108।।</blockquote>With regards to farmers, the Shukraniti advises the ruler to first measure the agricultural land and classify its producing capacity as high, moderate or low before fixing the tax amount. It specifies that a ruler should tax the farmer in a way that he is not at loss.<ref name=":6">B.D.Basu (1914), The Sacred Books of the Hindus ([https://archive.org/details/Sukra_Niti/page/n152/mode/1up?view=theater Vol.8 The Sukraniti]), Allahabad: The Panini Office.</ref><blockquote>बहुमध्याल्पफलितां भुवं मानमितां सदा ।।१०८।। ज्ञात्वा पूर्वं भागमिच्छुः पश्चाद्भागं विकल्पयेत् । हरेच्च कर्षकाद्भागं यथा नष्टो भवेन्न सः ।।१०९।।<ref name=":5" /> bahumadhyālpaphalitāṁ bhuvaṁ mānamitāṁ sadā ।।108।। jñātvā pūrvaṁ bhāgamicchuḥ paścādbhāgaṁ vikalpayet । harecca karṣakādbhāgaṁ yathā naṣṭo bhavenna saḥ ।।109।।</blockquote>Interestingly, Shukraniti mentions that the ruler should charge  

 

bahumadhyālpaphalitāṁ bhuvaṁ mānamitāṁ sadā ।।108।। jñātvā pūrvaṁ bhāgamicchuḥ paścādbhāgaṁ vikalpayet । harecca karṣakādbhāgaṁ yathā naṣṭo bhavenna saḥ ।।109।।</blockquote>Interestingly, Shukraniti mentions that the ruler should charge  

* 1/3rd amount as tax from the field that has a pond or well as its water source

* 1/3rd amount as tax from the field that has a pond or well as its water source

* 1/6th amount if its a barren or stony land<ref name=":6" />

* 1/6th amount if its a barren or stony land<ref name=":6" />

<blockquote>तडागवापिकाकूपमातृकाद्देवमातृकात् । देशान्नदीमातृकात्तु राजाऽनुक्रमतः सदा ।।११२।। तृतीयांशं चतुर्थांशमर्धांशं तु हरेत्फलम् । षष्ठांशमूषरात्तद्वत्पाषाणादिसमाकुलात्  ।।११३।।<ref name=":5" />

<blockquote>तडागवापिकाकूपमातृकाद्देवमातृकात् । देशान्नदीमातृकात्तु राजाऽनुक्रमतः सदा ।।११२।। तृतीयांशं चतुर्थांशमर्धांशं तु हरेत्फलम् । षष्ठांशमूषरात्तद्वत्पाषाणादिसमाकुलात्  ।।११३।।<ref name=":5" /> taḍāgavāpikākūpamātr̥kāddevamātr̥kāt । deśānnadīmātr̥kāttu rājā'nukramataḥ sadā ।।112।। tr̥tīyāṁśaṁ caturthāṁśamardhāṁśaṁ tu haretphalam । ṣaṣṭhāṁśamūṣarāttadvatpāṣāṇādisamākulāt ।।113।।</blockquote>The shukraniti also highlights that before charging tax, expenses incurred on a product should be determined.

 

taḍāgavāpikākūpamātr̥kāddevamātr̥kāt । deśānnadīmātr̥kāttu rājā'nukramataḥ sadā ।।112।। tr̥tīyāṁśaṁ caturthāṁśamardhāṁśaṁ tu haretphalam । ṣaṣṭhāṁśamūṣarāttadvatpāṣāṇādisamākulāt ।।113।।</blockquote>The shukraniti also highlights that before charging tax, expenses incurred on a product should be determined.

For example, in case of minerals, it states that the ruler  should tax minerals in the following rates but after the expenses like payment for extraction, production, etc. have been considered.<ref name=":0" />   

For example, in case of minerals, it states that the ruler  should tax minerals in the following rates but after the expenses like payment for extraction, production, etc. have been considered.<ref name=":0" />   

=== Welfare of the tax payer ===

=== Welfare of the tax payer ===

Due importance to the welfare of taxpayer should be given. The amount of tax should not be such that it will destroy the taxpayer completely. Tax should be realized in a fashion of a gardener and not as a coal merchant.(Shukraniti - 4.3.110 ?). As a gardener collects the flowers and fruits after having duly nourished the trees with care (Shukraniti 2.173), similar treatment should be given to the taxpayer.  In this context 'Manusmrti' conveys that, as a leech, a calf and a black bee eat their principle to current situation it can be said food gently so little by little the king should draw from his kingdom the annual taxes (Manusmrti 7.128). Tax should be taken in such a way that the king (government) and the businessman both may receive their award (Manusmrti 7.129).<ref name=":0" /><blockquote>यथा फलेन युज्येत राजा कर्ता च कर्मणाम् । तथावेक्ष्य नृपो राष्ट्रे कल्पयेत्सततं करान् । । ७.१२८[१२९ं] । ।

Ancient Indian texts reflect due importance given to the welfare of the taxpayer. They emphasize that the amount of tax should not be such that it destroys the taxpayer completely. In this regard, the Shukraniti gives the following example.<ref name=":0" /><blockquote>

Meaning: Tax should be realized in a fashion of a gardener and not as a coal merchant.

 

Suggesting that just like a gardener collects the flowers and fruits after having duly nourished the trees with care, a similar treatment should be given to the taxpayer.   

 

The Manusmrti also conveys the same idea as follows.<ref name=":0" /><blockquote>

 

Meaning: Tax should be taken in such a way that the ruler (government) and the businessman both may receive their award. As a leech, a calf and a black bee eat their food gently so little by little the ruler should draw from his kingdom the annual taxes.<ref name=":0" />

यथाल्पाल्पं अदन्त्याद्यं वार्योकोवत्सषट्पदाः । तथाल्पाल्पो ग्रहीतव्यो राष्ट्राद्राज्ञाब्दिकः करः । । ७.१२९[१३०ं] । ।<ref name=":1" /></blockquote>Tax policy of the government should not affect the functioning of businessman and also it should be in such a way that there would be an increase in government treasury.  

That is, the Tax policy of the government should not affect the functioning of businessman and also it should be in such a way that there would be an increase in government treasury.

If the tax is collected by injustice then the king immediately gets ruined along with his relatives (Yajnavalkya Smrti 1.3.340).<ref name=":0" /><blockquote>अन्यायेन नृपो राष्ट्रात्स्वकोशं योऽभिवर्धयेत् । सोऽचिराद्विगतश्रीको नाशं एति सबान्धवः । । १.३४० । ।<ref>Yajnavalkya Smrti, Acharadhyaya, [https://sa.wikisource.org/wiki/%E0%A4%AF%E0%A4%BE%E0%A4%9C%E0%A5%8D%E0%A4%9E%E0%A4%B5%E0%A4%B2%E0%A5%8D%E0%A4%95%E0%A5%8D%E0%A4%AF%E0%A4%B8%E0%A5%8D%E0%A4%AE%E0%A5%83%E0%A4%A4%E0%A4%BF%E0%A4%83/%E0%A4%86%E0%A4%9A%E0%A4%BE%E0%A4%B0%E0%A4%BE%E0%A4%A7%E0%A5%8D%E0%A4%AF%E0%A4%BE%E0%A4%AF%E0%A4%83/%E0%A4%B0%E0%A4%BE%E0%A4%9C%E0%A4%A7%E0%A4%B0%E0%A5%8D%E0%A4%AE%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A4%95%E0%A4%B0%E0%A4%A3%E0%A4%AE%E0%A5%8D Raja Dharma Prakarana]</ref></blockquote>The collection of tax used for wife and children as well as for the enjoyment of oneself leads to hell and unhappiness (Shukraniti 4.2.6). It means that the amount of tax should be utilized by government for eradicating the problems of subjects and not for providing more and more facilities to its ministers, etc.<ref name=":0" />

If the tax is collected by injustice then the king immediately gets ruined along with his relatives (Yajnavalkya Smrti 1.3.340).<ref name=":0" /><blockquote>अन्यायेन नृपो राष्ट्रात्स्वकोशं योऽभिवर्धयेत् । सोऽचिराद्विगतश्रीको नाशं एति सबान्धवः । । १.३४० । ।<ref>Yajnavalkya Smrti, Acharadhyaya, [https://sa.wikisource.org/wiki/%E0%A4%AF%E0%A4%BE%E0%A4%9C%E0%A5%8D%E0%A4%9E%E0%A4%B5%E0%A4%B2%E0%A5%8D%E0%A4%95%E0%A5%8D%E0%A4%AF%E0%A4%B8%E0%A5%8D%E0%A4%AE%E0%A5%83%E0%A4%A4%E0%A4%BF%E0%A4%83/%E0%A4%86%E0%A4%9A%E0%A4%BE%E0%A4%B0%E0%A4%BE%E0%A4%A7%E0%A5%8D%E0%A4%AF%E0%A4%BE%E0%A4%AF%E0%A4%83/%E0%A4%B0%E0%A4%BE%E0%A4%9C%E0%A4%A7%E0%A4%B0%E0%A5%8D%E0%A4%AE%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A4%95%E0%A4%B0%E0%A4%A3%E0%A4%AE%E0%A5%8D Raja Dharma Prakarana]</ref></blockquote>The collection of tax used for wife and children as well as for the enjoyment of oneself leads to hell and unhappiness (Shukraniti 4.2.6). It means that the amount of tax should be utilized by government for eradicating the problems of subjects and not for providing more and more facilities to its ministers, etc.<ref name=":0" />