The correct option is (b).
Explanation
During the period of the Mahajanapadas (c. 600 BCE), the political structure transitioned from tribal polities to territorial states. To maintain standing armies and a bureaucratic apparatus, the voluntary tributes (Bali) of the Vedic period were replaced by a mandatory and regular system of taxation.
Statement-wise Analysis:
- Statement 1 is Incorrect: The economy of the Mahajanapadas was primarily agrarian. Consequently, the tax on agricultural produce, known as Bhaga (share), was the most important source of state revenue. It was typically fixed at 1/6th of the produce. Taxes on craftspersons were supplementary and not the primary source of income for the state.
- Statement 2 is Correct: In the absence of a fully monetized economy for all transactions, taxation methods varied by profession. Craftspersons and artisans (such as weavers, smiths, and carpenters) often paid taxes in the form of labor rather than cash or goods. They were typically required to work for the king for one day every month.
Key Takeaway:
In the Mahajanapada taxation system, farmers paid taxes through a share of produce (Bhaga), herders through animal produce, and artisans through mandatory labor service.