Chanakya Niti: Chanakya’s tax policy: People did not have a burden, always had fun

Chanakya policy

Chanakya’s tax policy: The great diplomat of ancient India, economist Chanakya, in his famous book ‘Arthashastra’ described a tax policy which is still relevant today. Chanakya believed that for a successful state, the tax system should be such that it should not be a burden on the public. He compared his tax policy to bee.

According to Chanakya policy, the king should also do it as much from his subjects, so that his livelihood does not have any negative effects. The main objective of this principle was to ensure that the economic condition of the public is not weakened by the tax collection, but it could actively contribute to the development of the state.

Do not be tax burden

Chanakya believed that tax should never be a burden on the subjects. It should be done that the public can easily repay and after which their needs can be met. In the same way as the government again and again try to keep the tax burden on the common man lighter and inflation can be controlled. According to Chanakya’s policy, a sudden and much increase in tax rates can cause a feeling of dissatisfaction and rebellion in the subjects. Instead, taxes should be increased slowly and in a phased manner. This policy is also important in modern times.

Recently, the relief made by the central government in income tax and changes in the GST rates is evidence that governments are adopting this ancient principle. By cutting GST rates on the goods essential for common man, farmers and small entrepreneurs, the government has corrected that the tax burden on people should be minimized.

Bee theory of tax system

Chanakya gave the example of bee to explain the tax policy. Just as the bee takes the same juice from the flowers that do not harm the flower, in the same way the king should also take the necessary tax from the public. This principle is considered to be the foundation of justified taxation today.

Welfare of subjects is the final goal

According to Chanakya, the ultimate goal of any king should be the welfare of the subjects. The purpose of the tax collection was not only to fill the treasury, but to use those funds in the public interest. These funds should be used on road construction, education, healthcare and other public services.