In the simple terms, Tax is a predetermined charge mostly in form of cash or kind imposed by the authority on its subjects. The story of taxes goes hand in hand with the story of the civilization. Since the civilization, taxes were collected for social welfare and security. .

In the ancient period, the taxes were mostly applied on Agriculture and related activities, Industrial goods, Business activities etc. and collected throughout the dynasty.
 

In the Indian subcontinent, we come across a very comprehensive and detailed description of tax system, its rate and its administration in the writings of Arya Chanakya. (around 320BC) as prevalent in the Maurya Dynasty. On the theory of how a state and king formed in a previously uncontrolled and unregulated groups Arya Chanakya (around 320 BC) in his ‘Kautiliya Arthashastra’ has written,

The book is almost like a ready-reckoner for tax administration in a Kingdom. Particularly on the subject of Taxation it gives instructions in a manual like precision. For example, it describes Customs duty on the goods imported from a foreign country to be levied at the rate of 1/15th of the value. Wherever, value is not determinable, it is to be estimated from the cost of labour, time and efforts required for the goods based on the guidance from a expert in the subject.

Fine or Coarse Silk fabric, Cotton fabric, Spices, Metals, Colours, Sandal, Chemicals, Cloths, Liquor, Ivory, Animal skin, coarse and fine fabric, mats, wool and silk material attracted Customs duty of 1/10th or 1/25th value of the material. Fabric, four legged animals, two legged creatures, cotton yarn, medicines, scents, wood, grain, oil ghee, sugar, salt, Liquor etc. attracted 1/10th or 1/25th per cent extra duty. There are also references to services, which were taxable. Curiously, we learn that there was a ban on sale of the goods where they were produced. The person who bought flowers or fruits from their fields was fined 54 Paanas. One who bought metal from its quarry was fined 600 Paanas. Fine was in proportion to the crime.

The book elaborates the place of the check-post, procedure of auction and penalties for mis-declaration, under-valuation. It suggests King to send his intelligence officers to check whether duty officers are doing their duty correctly and vigilantly. If any officer is misinforming then he should be penalized with 8 times duty amount. It also suggests sending some officers in by-lanes and lee-lanes of the town to check if any merchant is escaping the check-post. Just as goods and services that were taxed, there were also exemptions in place. The good brought for marriage purpose, or the goods brought by a married woman from her father’s house to her husbands house, goods brought to gift to King, goods for worship, religious ceremony were totally exempted.
 

The exciting chapter of the History of India, (and particularly relevant to the area in and around Maharashtra)  is of Satavahanas. The word Maharashtra is derived from rattas, Maharatta / maharathi means great warriors with Chariots, who were overlords or chieftans of the major part of the region. The language of maharathi was prakrit. Its popular name ‘marathi’ is the derivation from ‘Maharathi’s, denoting the people who spoke it. The name of the state Maharashtra is also derived from sanskritisation of word Maharatthas now symbolizing a ‘big state’.

 The Revenue Minister was called “Rajjuk”. He was responsible for fair and judicial collection of taxes in the Kingdom. Farm produce, business, production and exports and imports were taxable. An idea of the turnover can be had from the fact that several wars were fought between Kshatraps and Satavahanas over control of the key ports and trade centres. The cultural and religious differences did not seem to have outlived the economical and business rivalry since we find mention of marriages, large donations to religious and social institutions.

It is mentioned in the book ‘Satavahankalin Maharashtra’ by Dr. R.S. Morwanchikar, a renowned authority on the subject, that ‘the trade between Rome and India was so favourable for India that a contemporary Roman writer Plinny the Elder was worried about the extravagance of the Romans on imports. He estimated that around 50 Million ‘sesterces’ (roman coins), equivalent to roughly 800,000 Pounds, were going to India per year. Roman politicians are on record to be worried by the outflow of money to pamper Roman wives. It was a fashion among Romans to use Indian spices in their Kitchen. Indian silk with rich zari work (gold embroidery) was popular among the rich Roman brides. Suitable measures were taken by the Roman authorities to curb imports to save the foreign exchange. India had established monopoly in the Silk and spice trade. As a result there was overall prosperity throughout the kingdom. There was cultural give and take due to these interactions.

The story of Roman trade with India is associated with the rise and fall of the Roman Empire. On the other hand, the rise and fall of Satavahan dynasty can be linked with the rise and fall in the Roman Trade. Around 150 BC northern Arabic traders were using strings of camels and donkeys and established great caravan routes called Incense Route.

Arabian frankincense were traded for spices from Indian subcontinents and sold to Greco-Roman world. Romans had to depend on caravan route going through Anatolia and Persia. The route was long and dangerous and also passing through non-friendly nations.

The sea route was pioneered by Axumite kingdom, but soon learned and used to great advantage by Romans. Advantages of Monsoon winds for sea-fare was discovered in 45-46AD by a Greek sailor, Hippolas. Earlier sailors preferred to sail close to the shore and landing at nightfall. Hippolas used monsoon winds (south-westerlies) for faster and direct access to India in summer season and return in winters with North-easterlies. This short route came to be known as the ‘Spice route’. Till the times of Emperor Augustus around 120 ships per year sailed to India.


The ships would arrive in Indian Ports in around August to October months and would leave in October to February period. The business through these trade link flourished so much that there is mention of a delegation sent by Satavahan King Pulumavi, having his Capital at Paithan to congratulate Roman Emperor Augustus on his coronation.

Roman traders visited southern India i.e. present day Maharashtra, Andhra, Karnataka, Kerala regions. There are stone inscriptions mentioning donations by Greek traders in Caves of Western region. Many of the traders settled permanently in India. The excavations at Ter (mentioned as Tagara in above map)- has shown signs of large Greco-Roman settlements. Greek geographer and astronomer, Ptolemy (200 AD) has referred to it as an important trading town. ‘Periplus of the Erythraean Sea’ (Periplus, a Latin word coming from ancient Greek, means sailing around) is a first century AD travelogue.

Some 23,852 artifacts painstakingly collected by Shri. Ramlingappa Lamture a local merchant of Ter, stand witness to the mute fact of the importance Ter achieved in the field of contemporary trade and commerce of the period. The Periplus mentions details of exported and imported items from Indian ports like Bharoch, Kalyan, Sopara among others.

It mentions silk, cotton cloths, fine muslin, figured linens, agate, precious stones, jewelry, ivory, black pepper, spices, butter, ghee, honey, indigo and sandal as items exported from the port. While Italian Copper, zinc, glass, topaz, coral, storax, frankincense, vessels of glass, silver and gold plates, wines, and  

cosmetic materials etc were imported. There was a quite advanced bead making industry. Some type of chemical etching work required to be done on beads to embellish them.

The bead making forms a bridge between very ancient Sumerian and Indian culture. Terracotta statues and Earthen Ware : Large amount of earthenware like pots, dishes, glasses, amphoraes, idols, dolls and sculptures are found in excavations at Paithan and Ter. Stone die of a roman woman figure is found at Paithan.

Recently, according to news-reports iron smelting site belonging to Satavahan period was found in Haglure village, on Solapur-Tuljapure road. The place has iron slags and vestiges of iron smelting activities. Large scale red polished ware indicate mass occurrence of production and trade. There are signs of Roman settlement near Ter. There are inscriptions in the Naneghat Caves (near Junnar) indicating donations were received from the Roman Traders for its construction. These finds do underline the fact that India has been on the Trade Map of the world from the time immemorial and also it had a well-established tax system in place.

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