Salt commission

The Salt Commission was an organization in Tang China used to raise tax revenue from the state monopoly of the salt trade.

History

Following the An Lushan Rebellion revenues from the land tax began to fall. The equal-field system that sustained the land tax was undermined by the aristocracy and Buddhist monasteries acquiring large tracts of land. In this manner the amount of taxable land decreased. To compensate the state decided to intensify the taxation of salt; at the time it controlled all major salt production and demand was guaranteed due to salt's essential nutritional value. In 758 the commission was formed to oversee the new scheme headed by the salt commissioner ("yantie shi"). The commissioner was a financial specialist, which was uncharacteristic of the Tang unspecialized political administration.

Effects

Salt was to be sold only at regional offices by licensed producers, and then only to licensed merchants at marked up prices. The distribution by merchants ensured the effects of the policy penetrated into areas where the central government had limited authority. The merchants then passed on the high cost of salt to consumers. Peasants were most affected as they spent a higher percentage of their incomes on basic food goods. The taxation of salt quickly accounted for over half of tax revenues within a few years of its inception.