Companies are merely organizations of tax evaders and always have been.
December 9, 2016 § Leave a comment
The East India Company’s strange tactics meant that Shaista Khan’s court was divided in its opinion as to how to treat the English emissaries. Hedges’ visit to Dhaka brought the debate to a head. Shaista Khan himself was all for being lenient towards this strange and argumentative organization. Global trade boomed during the 1670s, with a 30 per cent increase in ships returning from Asia to Europe compared to the previous decade. Shaista himself had benefited from European commerce, trading horses with western Asia in partnership with English merchants, for example. The governor felt there was room within the open structures of the Mughal polity to accommodate the Company’s demands, but officers on the tax-collecting side of the Bengal administration saw the Company as an organization of tax avoiders trying to flout Mughal power rather than a source of wealth. In the 1680s, money was required to pay for the Mughal wars in Bengal and in the south of India. The Mughal empire’s chief revenue officer in Bengal insisted the Company contribute by paying the fixed rate of 3 per cent customs duty. When Hedges suggested the Company would leave if the tax demand persisted, the Diwan answered simply that ‘they might go if they pleased’. As ever, Shaista Khan tried to broker a compromise, but all he could do was write to the Emperor Alamgir asking if he would grant the Company a firman (or order) giving it the permanent right to tax-free trade, and then giving the Company an eight-month period of remission while they waited for a response from Delhi. The firman never arrived.