UPSC CSE Prelims 2016
The taxation system during the reign of Krishna Deva Raya (1509-1529) in the Vijayanagar Empire was well-organized and diverse, contributing significantly to the state's revenue. Contemporary accounts, including those of foreign travelers, corroborate its features.
Statement 1 is correct. Land revenue constituted a major portion of the state's income. The tax rate on land was not uniform but was determined by its quality and type. Land was categorized into various types such as wetland (Nanja), dryland (Punka), orchards, and wasteland. Irrigated lands, due to their higher productivity, were typically taxed at a higher rate compared to dry lands, reflecting a system that aimed for equitable revenue collection based on agricultural output.
Statement 2 is correct. Beyond land revenue, the state also collected taxes from industrial and commercial activities. Private owners of workshops, including various artisans like weavers and blacksmiths, as well as merchants, were required to pay industrial and commercial taxes. This diversified approach to taxation ensured a broad revenue base for the empire.
Options (A) 1 only, (B) 2 only, and (D) Neither 1 nor 2 are incorrect because both statements accurately reflect the taxation policies implemented during Krishna Deva Raya's rule in the Vijayanagar Empire. The system featured both a differentiated land tax based on quality and an industries tax levied on workshop owners, making both statements factually correct.