Consider the following statements regarding the revenue architecture of the territorial monarchies during the sixth century BCE:
1. While Bhaga was the regular agrarian grain crop tax, the term Kara denoted periodic taxes levied on orchards and commercial trade commodities.
2. The state completely exempted specialized rural artisans from any form of fiscal extractions during seasonal crop failures.
Which of the statements given above is/are correct?

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Accepted Answer

Statement 1 is correct, but statement 2 is incorrect. Early public finance evolved beyond basic land extraction. Bhaga was the standard share of field harvest. Kara was a distinct dynamic tax on non-field commercial yields like fruit gardens or trade loads. Artisans were never exempted during stress periods; instead, they had to pay their state obligations through physical labor known as vishti, working for the king for free.

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