Revenue Farm - Advantages

Advantages

Tax farming was an important step in the history of economic development by providing a method for collecting taxes across a large area without the need for a tax-collecting bureaucracy, or during periods when such a bureaucracy is unworkable or impossible to maintain. Systems of tax farming similar to the Roman model were used in Pharaonic Egypt, various medieval Western European countries, the Ottoman and Mughal empires, and in Qing Dynasty China. As states become stronger, buoyed up by revenues brought in by tax farming, the practice was discontinued in favour of centralized tax collection systems. In part this was because tax farming systems tended to rely on wealthy individuals outside the state machinery, gangs, and secret societies.