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?

[UPSC Civil Services Exam – 2016 Prelims]

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (c)

Explanation:

• The taxation policy followed by Vijayanagara rulers was oppressive.
• However, the prosperity of the empire can be attributed to their taxation principles.
• The major source of revenue during the Vijayanagar kingdom was land tax.
• Under the reign of Krishna Devaraya, the land tax rate was fixed between one-third and one-sixth, depending on the quality of the land. Therefore, the first statement is correct.
• Apart from land tax, other taxes were imposed on various groups of people such as shopkeepers, farm servants, workmen, posters, shoemakers, and musicians.
• The empire also imposed grazing and house taxes.
• Commercial taxes, including levies, duties, and customs on manufactured articles of trade, were also levied.
• Private owners of workshops had to pay an industry tax. Therefore, the second statement is correct.