Revenue System (Part II – Taxation System)

The tax system during Maharaj’s time was a convenient and straightforward tax system. Jagir system was very popular at that time and a lot of money was obtained due to Jagir system. But because of the exploitation of the public, the Maharaj completely stopped the jagir system and left the task of tax collection i.e. collection to his executive board.

Another important source of income is the farmer. Sara (type of tax) received from farmers was also known as ‘Rayatwari’. The members of the executive committee themselves used to contact the farmers to collect the sara. While accepting rayotwari, Maharaj used to see the income of farmers. Rayotwari was then levied at 33% of the farm income and the farmer had two options to pay the sara either he could pay the sara in the form of money or in kind e.g. wealth. Also the sara could be paid in installments and the accounting and checking of the accounts was entirely in the hands of the Executive Officer. Not only this, tax was also collected from the income of these executive officers. Which was called Inampatti, Meeraspatti, Deshmukhpatti, Sardeshmukhipatti. Telpatti, Sarafpatti, Vethbigari, Hejibpatti are good examples of Professional Tax of this era.

Also, among all indirect taxes, Customs Duty should be collected first. Chaul, Dabhol, Vengurla, Rajapur and Ratnagiri were Chhatrapati Shivaji Maharaj’s main ports for import and export. At the same time, whatever goods were transported from one state of Swarajya to another state, Maharaj used to collect transit duty from them. Customs collection was a major part of business and revenue at that time. In course of time, the Maharaj abolished fourteen local taxes on his citizens.

Continue reading with Part III

or goto Part IV, Part V, Part VI, Part VII, Part VIII, Part IX, Part X, Part XI, Part XII, Part XIII, Part XIV, Part XV, Part XVI, Part XVII, Part XVIII