Literary Interdisciplinary Research

Principles and results of Anoshirvan's tax reform policies with emphasis on Shahnameh

Document Type : Original Article

Authors

ali jafari shahrestani 1
farshad momeni 2

1 PhD in Economic Development and Planning, Faculty of Economic Sciences, Allameh Tabataba’i University, Corresponding Author

2 Professor, Department of Economic Development and Planning, Faculty of Economic Sciences, Allameh Tabatabai University

10.30465/lir.2023.41865.1547
Abstract
Introduction: The tax reforms of Khosrow I, also known as Anushirvan, represent one of the earliest systematic changes in Iran's fiscal history. Although historical sources provide limited details on the economic aspects of these reforms, Ferdowsi's Shahnameh remarkably delves into the intricacies of this subject. These reforms not only impacted the Sassanid era but also profoundly influenced the taxation system of Islamic territories.
Materials & Methods: In this research, a qualitative method has been employed. Qualitative research is based on interpretive methodology, and in this study, two approaches—"qualitative documentary research" and the "simulation technique"—have been utilized. Therefore, by first referring to Ferdowsi's Shahnameh and analyzing the relevant verses, the principles of the implemented measures have been identified and represented as a policy framework using other historical documents.

Discussion & Result: Prior to Anushirvan's reign, the taxation system was based on the "Moqasama" method, in which a portion of agricultural produce was collected as tax. This method had numerous drawbacks, including government revenue instability, administrative corruption, and excessive pressure on farmers. The lack of a structured and predictable system posed significant challenges.
Factors such as social inequality, rigid class systems, an empty state treasury, prolonged droughts, and social uprisings like the Mazdakite movement highlighted the necessity for major reforms. These issues prompted Qobad (Khosrow's father) and later Khosrow I to introduce fundamental changes to the tax system.
The main tax reforms of Khosrow I was:
1. Change in Calculation Method and Expansion of the Tax Base: Under Anushirvan’s directive, lands were surveyed, and taxes were determined based on land area rather than produce quantity. This allowed taxes to be levied on all lands, including uncultivated ones. For the first time, taxes were also imposed on fruit-bearing trees, significantly broadening the tax base.
2. Adjustment of Tax Rates and Amounts: Previously, the tax rate for grains ranged from one-third to one-quarter of the yield, which was reduced to one-tenth. Different rates were established for fruit trees like grapes, dates, and olives. This new system calculated taxes based on the type of produce and harvest season, exempting some crops, such as summer fruits, from taxation.
3. Rescheduling and Method of Tax Collection: Instead of annual collection, taxes were collected three times a year in cash. This transition reduced corruption, storage costs, and challenges related to weighing produce, while improving transparency.
4. Reorganization of the Tax Administration: The country was divided into four tax regions, with financial records maintained in three separate registers (overseen by the treasurer, local officials, and the high priest). This meticulous oversight minimized corruption and enhanced transparency.
5. Flexibility in Taxation: Exemptions were granted for lands damaged by natural disasters or farmers unable to cultivate due to financial constraints. Additionally, financial aid from state revenues was provided to landless or distressed farmers.
6. Revision of Head Tax Rates: Before Khosrow I, head taxes were fixed. A new census allowed for adjustments, with taxes levied on men aged 20 to 50, exempting those outside this range. Taxpayers were categorized into three classes based on wealth, with rates of 12, 8, and 6 dirhams, ensuring a more equitable distribution.
These reforms yielded significant results:
· Improved Revenue: By broadening the tax base and stabilizing revenues, the treasury’s condition improved, reducing budget deficits.
· Agricultural Development: Loans and aid facilitated the reconstruction of agricultural infrastructure.
· Social Justice: The new system promoted fairness through taxpayer categorization and targeted exemptions.
· Efficiency and Reduced Corruption: Enhanced oversight and cash payments reduced administrative corruption and inefficiencies.
· Transparency: Maintaining detailed financial records increased accountability.
Conclusion: The tax reforms of Khosrow I exemplify successful economic policies in Iran’s history that enhanced principles of justice, efficiency, and transparency. These reforms not only strengthened the state’s finances but also had a lasting impact on the economic and social structures of Sassanid society, serving as a model for future governance.

Keywords

Tax Reforms
Agriculture
Commodity Tax
Per Capita Tax
Shahnameh
Subjects
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