Kautilya alias Vishnu Gupta (who is famously known as Chanakya) was an Indian politician, strategist and writer. He is well known for his text “ARTHASHASTRA”. He lived during 350 BC-275 BC.

Adam Smith, Father of Economics, is well known for his famous book “The Wealth of Nations”. He lived during 1723 AD–1790 AD.

What’s common between the Both or Why I am mentioning about both of them here now? Kindly read both Kautilya’s Principle of Taxation and Adam Smith’s Cannons of Taxation that are as follows:

KAUTILYA’S Principles of Taxation:

1. Taxation should be Such that it may not be felt by the Poor.
2. In raising taxes higher, it should be done little by little when the realms prosperity is increasing. It should be Mild.
3. Taxes should be levied on Proper Places at proper time in a proper form.
4. It should be reasonable and equitable.

ADAM SMITHS Cannons of Taxation:

1. Cannon of Equality :- Ability to pay principle.
2. Cannon of Certainty:-  The amount of tax should be Paid.
3. Cannon of Convenience:–Less burdensome to tax payer.
4. Cannon of Economy:-  tax should be collected to minimum Possible Level.

There is an interesting book titled “Kautilya – The True Founder Of Economics” by Prof. Balbir Singh Sihag. Where he talks about Kautilya’s findings on economics and how theories evolved. 

For the first time, strong arguments are provided by the author that Kautilya must be considered as the founder of economics in the fourth century BCE. 

In the book (page no. 10-11) he had given a partial list of concepts used by Chanakya alias Kautilya in his book Arthashastra (4th Century BCE). The list is as follows: 

The authour also stated that “It may be noted that the above illustratively enumerated twenty-one concepts, used in modern economic analysis, were already used and applied in Kautilya’s formulations. Adam smith has the credit for only two…“

Note: The book cost Rs. 660 in Indian Market. (as mentioned in the hard copy of the book cover and this info is for the readers who wish to buy)