UPSC Prelims 2016 – Question 9

Q: Regarding the taxation system of Krishna Deva, the ruler of Vijayanagar, consider the following statements:

1. The tax rate on land was fixed depending on the quality of the land.
2. Private owners of workshops paid an industries tax.

Which of the statements given above is/are correct?

a) 1 only

b) 2 only

c) Both 1 and 2

d) Neither 1 nor 2

The correct answer is Both 1 and 2. 

• Taxation policy of Vijayanagar rulers  
• The empire’s prosperity can be explained by their taxing principles.  
• During the reign of the Vijayanagar dynasty, the land tax was the most important source of revenue. 
• During the reign of Krishna Deva Raya, the rate was fixed between one third and one-sixth depending on the quality of the land. Hence, Statement 1 is correct. 
• In addition to property tax, taxes were levied on retailers, farm servants, labourers, posters, shoemakers, singers, and others. 
• Grazing and property taxes were also levied. 
• Commercial taxes, such as levies, tariffs, and customs charges, were also charged on manufactured products of commerce. 
• Private workshop owners had to pay an industry tax as well. Hence statement 2 is correct.

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