taxation in CH-3 of history ruling the country side
Answers
Answer:
Though the company became Diwan of Bengal province, still it was working as a trading company. It was not interested in setting up any regular system of assessment and collection of revenue. Their main aim was to increase revenue so that they have plenty of money to buy cotton and silk but the prices of the goods had increased so far. Now, as we have studied in previous chapters that earlier the company was dependent upon the inflow of gold and silver from Britain for purchasing goods in India but after 1765 things changed and now the revenue from Bengal was enough to purchase goods.
But here also a big problem arose. What was this problem?
The economy of Bengal faced a deep crises because of the following:
Artisans left Bengal as they were being forced by the company to sell their products at cheaper rate.
Peasants were unable to pay the heavy dues laid on them.
Agriculture was collapsing.
Big famine of 1770 hit Bengal. This killed about 10 million population there, washing out about 1/3rd of the population of Bengal.
Explanation: