The Salt Commission was an organization in Tang

Tang Dynasty

The Tang Dynasty was an imperial dynasty of China preceded by the Sui Dynasty and followed by the Five Dynasties and Ten Kingdoms Period. It was founded by the Li family, who seized power during the decline and collapse of the Sui Empire...

 China

China

Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 used to raise tax

Tax

To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

 revenue from the state monopoly

Monopoly

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...

 of the salt

Salt

In chemistry, salts are ionic compounds that result from the neutralization reaction of an acid and a base. They are composed of cations and anions so that the product is electrically neutral...

 trade.

History

Following the An Lushan Rebellion revenues from the land tax began to fall. The equal-field system

Equal-field system

The Equal-field system land system was a historical system of land ownership and distribution in China used from the Six Dynasties to Mid-Tang dynasty....

 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

758

Year 758 was a common year starting on Sunday of the Julian calendar. The denomination 758 for this year has been used since the early medieval period, when the Anno Domini calendar era became the prevalent method in Europe for naming years.- Asia :* Emperor Junnin succeeds Empress Kōken on the...

 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.

See also

• Economy of the People's Republic of China
  Economy of the People's Republic of China
  The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
  
  
• Economic history of China (Pre-1911)
• Economic history of Modern China
  Economic history of modern China
  The economic history of modern China began with the fall of the Qing Dynasty in 1911. Following the Qing, China underwent a period of instability and disrupted economic activity. Under the Nanjing decade , China advanced several industries, in particular those related to the military, in an effort...