Commutation Act
Encyclopedia
The Commutation Act of 1784, enacted by the British Parliament, reduced the tax on tea
from 119% to 12.5%, effectively ending the smuggling trade. William Pitt the Younger
, acting on the advice of Richard Twining of the Twinings
Tea Company, introduced the act to increase revenues through legitimate sales of tea by ending 100 years of punitive tea taxes which promoted smuggling.
The act was created to stimulate trade in China
for the British East India Company
, which at the time was suffering from mounting debts. Indian opium
was exchanged for tea in China which was then shipped to Britain for sale on the domestic market.
The Commutation Act improved trade relations between Britain and one of its primary tea suppliers, China.
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
from 119% to 12.5%, effectively ending the smuggling trade. William Pitt the Younger
William Pitt the Younger
William Pitt the Younger was a British politician of the late 18th and early 19th centuries. He became the youngest Prime Minister in 1783 at the age of 24 . He left office in 1801, but was Prime Minister again from 1804 until his death in 1806...
, acting on the advice of Richard Twining of the Twinings
Twinings
Twinings is a marketer of tea based in Andover, Hampshire, England.- History :The founder of Twinings, Thomas Twining, opened the first known tea room, at 216 Strand, London, in 1706, which is still operating today. The firm's logo, created in 1787, is one of the world's oldest in continuous use...
Tea Company, introduced the act to increase revenues through legitimate sales of tea by ending 100 years of punitive tea taxes which promoted smuggling.
The act was created to stimulate trade in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
for the British East India Company
British East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
, which at the time was suffering from mounting debts. Indian opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
was exchanged for tea in China which was then shipped to Britain for sale on the domestic market.
The Commutation Act improved trade relations between Britain and one of its primary tea suppliers, China.