Taxation During British Rule on Made in India Products

The term “tax” comes from the word “taxation,” which means “estimate.” taxes on wealth and income are generally thought to be of recent origin. Yet, there is ample evidence to suggest that income taxes were imposed in some form or another, even in primitive, most ancient cultures. These were charged on the sales of goods or cattle and were collected sporadically. Nearly 2000 years ago, Caesar Augustus issued an edict ordering that everyone is taxed. Taxes were also imposed in Greece, Germany, and the Roman Empires, usually based on turnover but occasionally based on occupations. For centuries, the Monarch received tax revenue. 

Impact On The Economy

The Industrial Revolution, which began in England in the late 18th and early 19th centuries, pioneered the mass production of things using machines that we see today. A class of industrialists in England benefited more from producing than from trading. The Industrial Revolution aided English merchants in amassing a large sum of money from Asia, Africa, and America. They planned to use their newfound wealth to establish enterprises and trade in India. This resulted in a significant increase in finished product output. They wanted more crude ingredients from India and the ability to export finished goods back. The East Indian Company aided in the funding and expansion of its manufacturing base.

Textile Manufacturing and Trade

The direction of textile commerce between Britain and India has now shifted. Previously, Europe was a key market for Indian handloom. Cotton, linen, silk, and woollen commodities from India already had states in Asia and Africa. The textile industry in England advanced significantly due to the arrival of industrialisation. Machine-made clothing from English companies was smuggled into Indian markets in large quantities. Because the British items were marketed at a considerably lower price, the handicraft industries faced an increased danger due to the enormous number of products created on mechanical looms in England.

Land Revenue Policy and Land Settlements are two of the most critical aspects of land revenue policy.

Agriculture has been the people’s principal source of income since ancient times.

As a result, the land tax had become a significant source of money for all emperors worldwide. Land revenue continued to rise throughout the British administration, and there were numerous reasons for this. Previously, the British had come to India to trade. They gradually desired to conquer India’s immense land, which would require a large sum of money. To fund their programmes and military operations, they collected taxes from farmers. The British used direct and indirect methods to collect the money they owed them. This impacted people’s lives because they couldn’t meet their necessities since they had to share the produce with the landowners and collectors. The rural poor were denied relief and fair law by the local government.

Some Land Revenue Systems During British Rule

The Permanent Settlement

It is also referred to as the Permanent Settlement of Bengal. It was an agreement that was among landlords of Bengal and the East India Company. This agreement was to fix the revenues that will be raised from the land of Bengal. 

Ryotwari System

This land system was introduced by Thomas Munro during British India. This land revenue system gave access to the government to deal with the ryot, who are the cultivators, directly for collecting revenue. It also provided peasant freedom to acquire or cede a new land for the purpose of cultivation.

Mahalwari System

This system was introduced by Holt Mackenzie and was used to protect the Indian village level autonomy. It was launched in the year 1822. It included Nambardars  or landlords that represented villages. The landlords and the village communities were together responsible for tax payments, and there was no individual responsibility assigned. 

The Emergence of a new Money-Lending Class

The British government’s time-bound and unreasonable tax demands led the peasants to take out loans from moneylenders. These moneylenders frequently victimised the peasants, who charged exorbitant interest rates. False accounting, faked signatures, and thumb impressions were often employed. The British developed a new legal framework and policy that primarily benefited moneylenders who were local merchants or landlords. In most cases, the peasantry failed to repay the debt in full, including interest. As a result, their lands progressively fell under the control of the money lenders.

Conclusion

A lot of noteworthy events occurred in the world during the 18th century. The Industrial Revolution, having taken place in The UK, was one such occurrence. It subsequently spread to other European countries as well. You’ve probably heard about England’s Industrial Revolution and the discovery of novel sea and trade routes. Vasco da Gama, a Portuguese navigator, discovered such a sea route to India in 1498. Consequently, the English, French, Portuguese, and Dutch flocked to India in search of trading opportunities. They also used it in India to spread missionary activity.