 The king determined the tax levels based on need and circumstances in the kingdom while ensuring that an undue burden was not placed on the peasants . The land owner or tenant paid a variety of taxes , including land taxes , produce taxes and payment of the overhead for maintenance of the Gavunda ( village head ) . Land taxes were varied , based on type of land , its produce and situation and ranged from 8 % to 16 % . A Banavasi inscription of 941 mentions reassessment of land tax due to the drying up of an old irrigation canal in the region . The land tax may have been as high as 20 % to pay for expenses of a military frequently at war . In most of the kingdom , land taxes were paid in goods and services and rarely was cash accepted . A portion of all taxes earned by the government ( usually 15 % ) was returned to the villages for maintenance . 
