In 1722, Peter the Great of Russia abolished a tax he had introduced some twenty years earlier, it having proved to be a rather hairy source of national income. The tax had been the result of an 18-month European 
tour to seek the aid of European monarchs, and to observe how other militias and armies were trained. During the tour, he learned that many European customs and styles were far superior to the antiquated ways in Russia. One of the first rulings he made upon his return was that all of his courtiers and officials shave off their long beards, as being clean-shaven was the European style. Anyone who kept their beard was subject to an annual Beard Tax of 100 rubles. Upon payment of the tax, bearded Russians were given a token; on one side of the token was an image of the lower part of a face with a full beard and the inscription “the beard is a superfluous burden.”
The idea of a beard tax had a bit of a history. Nearly 200 years earlier, King Henry VIII of England, who wore a beard himself, had introduced a tax on beards, although he probably didn’t pay the tax himself (it’s good to be the king). The tax was a graduated tax, varying with the wearer’s social position, not the length of his beard. Some years later, his daughter, Elizabeth I, reintroduced the beard tax, taxing every beard of more than two weeks’ growth, although she probably didn’t pay the tax herself (it’s good to be the queen).
Wretched Richard's Almanac 