Why Was The East India Company Allowed Tea Tax Exemption In The Tea Act Of 1773?

by | Last updated on January 24, 2024

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The tea tax was kept in order to maintain Parliament’s right to tax the colonies. The Tea Act was not intended to anger American colonists, instead it was meant to be a bailout policy to get the British East India Company out of debt .

What was the significance of the tea tax?

The Tea Act taxed the tea at source (i.e. in India) so there was no tax collection in the colonies. The act allowed the tea to go directly to America instead of having to be imported to Britain and then re-exported to the colonies . This made the tea 9d per lb cheaper, even with the 3d tax.

What was the tax on tea in 1773?

The act granted the EIC a monopoly on the sale of tea that was cheaper than smuggled tea; its hidden purpose was to force the colonists to pay a tax of 3 pennies on every pound of tea . The Tea Act thus retained the three pence Townshend duty on tea imported to the colonies.

What did the Tea Act allow the East India Company to do?

By allowing the East India Company to sell tea directly in the American colonies , the Tea Act cut out colonial merchants, and the prominent and influential colonial merchants reacted with anger. ... The Tea Act revived the boycott on tea and inspired direct resistance not seen since the Stamp Act crisis.

Why was the Tea Act of 1773 so important?

This act eliminated the customs duty on the company’s tea and permitted its direct export to America . ... Though the company’s tea was still subject to the Townshend tax, dropping the customs duty would allow the East India Company to sell its tea for less than smuggled Dutch tea.

What was the cause and effect of the Tea Act of 1773?

The Tea Act was a tax on all imported tea from Britain. Cause: The colonists boycott against British goods had hurt their trade , so the British repealed the Townshend Acts after the Boston Massacre. ... Effect: The Sons of Liberty organized a protest against the Tea Act known as the Boston Tea Party.

Why did the Tea Act make colonists angry?

The passing of the Tea Act imposed no new taxes on the American colonies. ... Besides the tax on tea which had been in place since 1767, what fundamentally angered the American colonists about the Tea Act was the British East India Company’s government sanctioned monopoly on tea .

What were the consequences of the Boston Tea Party?

Coercive Acts

closed Boston Harbor until the tea lost in the Boston Tea Party was paid for. ended the Massachusetts Constitution and ended free elections of town officials. moved judicial authority to Britain and British judges, basically creating martial law in Massachusetts.

Why did the colonists dress as Mohawks during the Boston Tea Party?

The disguise was mostly symbolic in nature; they knew they would be recognized as non-Indians. The act of wearing “Indian dress” was to express to the world that the American colonists identified themselves as “Americans” and no longer considered themselves British subjects.

Was anyone killed during the Boston Tea Party?

No one died during the Boston Tea Party . There was no violence and no confrontation between the Patriots, the Tories and the British soldiers garrisoned in Boston.

Why did the colonists resent the Tea Act even though it reduced the price of tea?

Even though the price of tea was lowered, the colonists were angry because they were forced to buy only British East India Company’s tea and no longer could buy any tea they wanted . ... They also passed the Quebec Act, which prevented colonists from moving west.

How much did the Boston Tea Party waste?

On this evening, Dec. 16, in 1773, dozens of colonists boarded three ships laden with East India Company tea and dumped the entire stock — 45 tons of tea, worth roughly $1 million in today’s economy — into the harbor to protest Parliament’s recent Tea Act.

Why did the Boston Tea Party lead to the American Revolution?

The Boston Tea Party was the key-event for the Revolutionary War. With this act, the colonists started the violent part of the revolution. It was the first try of the colonists, to rebel with violence against their own government . ... Then they (the government) passed taxes on lead, paint, paper and tea.

What was the purpose of the Tea Act of 1773 quizlet?

The Tea Act gave Britain’s East India Company a monopoly on tea. Only the East India Company was allowed to sell tea to the colonies. The Tea Act meant that the colonists had to buy their tea from the East India Company . They could either pay the tax on tea or not drink tea at all.

What was the cause and effect of the Sugar Act?

Explanation: The Sugar Act occurred when parliament decided to make a few adjustments to the trade regulations. ... The causes of the Sugar Act include the reduced tax on molasses from 6 pence to 3 pence, increased tax on imports of foreign processed sugar, and the prohibition on importing foreign rum .

What is the effect of the Quartering Act?

This new act allowed royal governors, rather than colonial legislatures, to find homes and buildings to quarter or house British soldiers . This only further enraged the colonists by having what appeared to be foreign soldiers boarded in American cities and taking away their authority to keep the soldiers distant.

Sophia Kim
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Sophia Kim
Sophia Kim is a food writer with a passion for cooking and entertaining. She has worked in various restaurants and catering companies, and has written for several food publications. Sophia's expertise in cooking and entertaining will help you create memorable meals and events.