King Khagemba reformed the taxation system by introducing the:

The correct answer is: Lallup system.

The Lallup system is a traditional system of forced labor in Bhutan. It was introduced by King Khagemba in the 17th century as a way to fund the construction of roads, bridges, and other public works projects. Under the Lallup system, all able-bodied men were required to work for the government for a certain number of days each year. The Lallup system was abolished in 1956, but it still has some influence on the way that Bhutanese society is organized.

The other options are incorrect because they do not describe the Lallup system.

• Fiscal reforms are changes to the way that a government collects and spends money.
• Revenue settlement is the process of determining how much tax a person or business owes.
• Land tenure system is the system of laws and regulations that govern the ownership and use of land.