History of The British Salt Tax in India - Taxation of Salt

Taxation of Salt

The German scholar M. J. Schleiden in his book Das Salz said that there was direct correlation between salt taxes and despots. This has been evidenced by history which stands testimony to the fact that highly despotic civilizations are the ones which tax salt production and trade.

Salt taxation originated in ancient China. Guanzi, a book written in around 300 BC recommends taxation of salt and propounds different methods for this purpose. The recommendations of Guanzi became the official salt policy of early Chinese Emperors. At one point of time, salt taxes constituted over one half of China's revenues and contributed to the construction of the Great Wall of China.

Salt was also important in the ancient Roman Empire. The first of the great Roman roads, the Via Salaria, or Salt Road, was built for transporting salt. However, unlike the Chinese, Romans did not monopolize salt.

In Britain, there are references to salt taxes in the Domesday Book but they had died out before patents were given in Tudor times. Reintroduced in 1641 in the Commonwealth period there was such outcry that were withdrawn on the restoration of the monarchy in 1660 and not reinstated till 1693 under William III, with duty set at two shillings a bushel on foreign salt, one shilling on native salt with exemption for fishery salt. In 1696 the tax was doubled and remained in force till abolished in 1825. There were probably 600 full-time officials employed in the collection of the taxes.