Commutation Act cuts British tea duty

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Parliament reduced the duty on tea from about 119 per cent to 12.5 per cent, replacing the lost revenue with a window tax. Legal tea immediately undercut the smuggled trade, which had been carrying more tea into Britain than legal imports, and consumption expanded sharply. The Act converts tea from an elite luxury into a mass commodity, and in doing so massively increases the volume Britain must buy from China — and therefore the size of the payment problem.

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