Neither meetings nor memorials, however, seemed to have any influence
with the Government; but in 1852 Mr. Disraeli proposed to reduce the
duty on tea to 1_s._ 10_d._, and ultimately to 1_s._, the reduction
to be spread over six years. This reduction, with other reductions
of the dues on shipping and the malt tax, would have involved a loss
of more than 3,000,000_l._, to supply which, he proposed, among other
things, to impose the income tax on industrial incomes over 100_l._
His proposals were, however, strongly opposed by Mr. Gladstone, and
rejected by a large majority. When, however, Mr. Gladstone returned to
power, in 1853, he proposed the very same reductions which he had when
out of office rejected. He proposed to reduce the duty to 1_s._ 10_d._
during the following year, and by 3_d._ a year until the limit of
1_s._ was reached. Including reduction of other taxes, the loss to the
revenue would have amounted to 5,315,000_l._, which he proposed to meet
by renewing the income tax for seven years, extending the stamp duties,
and increasing the duty on spirits; but owing to the Crimean War the
proposed reduction was not effected. The expenses of this war were so
heavy, amounting to 70,000,000_l._, that the duty on tea was increased
3_d._ a pound.
When the war was over, Mr. Gladstone desired that the added duties
on tea, sugar, and other necessaries of life, should be taken off;
but on the 6th of March, 1857, "the Chancellor of the Exchequer, Sir
George Lewis, announced a modification of the Budget resolutions so
far as the tea duties were concerned, and proposed that the amount of
the tax, which he had arranged for three years, should be applicable
for one year only. Mr. Gladstone moved an amendment to the effect
that after April 5, 1857, the duty should be 1_s._ 3_d._, and after
the 5th of April, 1858, 1_s._ The amendment was negatived by 187 to
125, and the Chancellor of the Exchequer's resolution, fixing the duty
at 1_s._ 5_d._ was carried." In 1865 the duty was reduced to 6_d._
under Mr. Gladstone's Government, and at this figure it remains. But
the attention of the Chancellor of the Exchequer has recently been
called to the disadvantage under which the Indian tea-industry is
placed by the imposition of the English Customs duty of 6_d._ per
lb. on all tea imports, and the object of the memorialists was to
induce him to consider the expediency of abolishing or modifying this
duty when framing his financial budget. It was pointed out that the
Indian tea-industry is greatly in want of such relief, as evidenced by
recent Calcutta reports showing the market value of the shares of the
joint-stock tea companies.
Public-domain text, read in full here on John Shaqi.
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