8 - smuggling

History

What is smuggling?

Smuggling is the act of trading goods secretly in order to avoid paying customs duty (tax on imports).

How did government policies affect smuggling in the 18th Century?

Government policies turned smuggling into a major crime as the government clamped down on it to raise money for wars, particularly against France.

What was the primary source of government revenue before income tax?

Before income tax, the government raised money primarily from customs duties on popular imported goods.

What was the customs duty rate on goods like tea?

Goods like tea had a customs duty of 70%, prompting consumers to buy cheaper, smuggled goods on the Black Market.

What goods were heavily taxed by customs duties in the 18th Century?

Popular imported goods such as chocolate, tea, wine, spirits, salt, leather, and soap were heavily taxed by customs duties.

Why did smuggling become more common in the 18th Century?

Smuggling became more common due to high customs duties, such as the 70% tax on tea, which made consumers seek cheaper, untaxed, smuggled goods.

What was the impact of the lack of policing on smuggling in Britain?

Insufficient policing made it easy to smuggle goods into Britain, facilitating illegal trade.

What type of trade involves the sale of goods without paying taxes?

Black Market trade involves the sale of goods illegally, avoiding taxes such as customs duties.