Question

In 1896, the British government levied the same amount of tax on both British and Indian cloth. Why?

• A. To protect the interest of Indian mill owners.
• B. To protect the sale of British cloth in India.
• C. To protect the sale of Indian-made cloth.
• D. To protect the sale of British cloth in Britain.

Answer 1

The correct option is B To protect the sale of British cloth in India.

In 1896, the British government's income reduced drastically and they levied three and a half percent tax on the British cloth coming to India. In order to protect the sale of British cloth in India, the same amount of tax was levied on Indian cloth as well. This move was not appreciated by the Indians.