Why was it a contentious issue when the British government in India was forced to levy a 3.5% tax on Indian cloth in order to protect the sale of British cloth in India?
Indians were already paying huge chunks of their income as tax and the additional tax would have been excessively burdensome.
Indians realized that the British government would not help the Indian production houses.
Indians realised that the British would utilise the tax money for building factories for ammunition and supply during WWI.
Indian factories did not have any governmental protection in terms of laws to safeguard their interests.
The correct option is B Indians realized that the British government would not help the Indian production houses.
When the British government in India wanted to levy a three and a half per cent on Indian cloth because the British government imposed the same percentage of tax on British cloth coming to India, it became the bone of contention between Indians and the British government in India. The British government did this to protect the sale of British cloth in India. But, Indians realised that the British government would not help the Indian production houses and would protect only the interest of British cloth makers. Thus, they opposed the tax and demanded its removal.