WORLD HISTORY

Detailed explanation-1: -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.

Detailed explanation-2: -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.

Detailed explanation-3: -Tea Act Imposed In May 1773, British Parliament passed the Tea Act which allowed British East India Company to sell tea to the colonies duty-free and much cheaper than other tea companies-but still tax the tea when it reached colonial ports.

Detailed explanation-4: -In 1767, Charles Townshend (1725-67), Britain’s new chancellor of the Exchequer (an office that placed him in charge of collecting the government’s revenue), proposed a law known as the Townshend Revenue Act. This act placed duties on a number of goods imported into the colonies, including tea, glass, paper and paint.

Detailed explanation-5: -On April 27, 1773, the British Parliament passes the Tea Act, a bill designed to save the faltering East India Company from bankruptcy by greatly lowering the tea tax it paid to the British government and, thus, granting it a de facto monopoly on the American tea trade.