The Reforms of Duties and Taxes in 1764–1766

Abstract

In the middle of 18th century situation of Poland-Lithuania Commonwealth was very difficult. The Commonwealth was losing its position in Europe, and was facing with internal weakness. Therefore its no wonder, that after the death of August III main political fraction – The (Czartoryski’s) Family – launched an ambitious reform program of the state. One of the most serious problem of the Commonwealth was that Saxons reign left the Polish-Lithuanian treasury badly underfinanced, with income of about 8,5 million zlotys. Tax levels were low, and privileged groups remained mostly untaxed.

The preelection “convocation” parliament of 1764, controlled by The Family supporters, reformed existing taxes and enacted several new taxes and duties. A general custom duty, paid also by the nobles and clerics, brought in about 2,3 million zlotys in crown provinces in 1765. Unfortunately, Friedrich II of Prussia founded that the duty violated the Treaty of Wehlau of 1657 and started collecting his own illegal duties from Polish boats on the Vistula. In 1766, Poland-Lithuania had to withdraw the general duty and bring back the duty privileges of nobles, but simultaneously put in a new alcohol tax. The review of crown estates allowed to grow the income from military “quarter tax”. Parliament also increased the Jewish pool tax.

In the result, the annual income the Polish-Lithuanian treasury increased to 13 million zlotys. Savings of treasury went up from 19 000 zlotys to 1 800 000 zlotys per year. The reforms of duties and taxes in 1764–1766 had a significant influence to strengthener the Polish-Lithuanian state. King Stanislaw August Poniatowski and The Family wanted to continue the state reform program, but the plans was interrupted by the War of the Bar Confederation and the First Partition of Commonwealth.