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The fact that industrial and commercial taxation in the Song dynasty greatly exceeded agricultural taxation was unprecedented in previous dynasties. This is mainly explained by the Song government’s financial and economic policy which was dominated by industrial and commercial taxation, made good use of the laws and characteristics of market relations and the commodity economy in business operations, actively stimulated consumption and was clearly utilitarian. Under this policy, the rulers, in pursuit of huge profits, used state power and mobilized various resources to implement a monopolies system and a commercial tax system, which, in turn, helped develop the commodity money economy, expanded the scale of market exchange and promoted the high degree of development of the commodity economy of the time. The financial and economic policy of the Song dynasty showed the unique advantages of the imperial state’s intervention in the economy. It was this that distinguished the Song dynasty from other dynasties in terms of the prosperity of the commodity and monetary economy.

The Song Dynasty’s Fiscal and Economic Policy and Its Social Economy