Commutation Act 1784

The Commutation Act of 1784 was a statute passed by the British Parliament under William Pitt the Younger, who became Prime Minister in 1783. On the advice of the major London tea dealers, Pitt introduced the Act to reduce the tea tax from the previous 119% to 12½%. Consequently, tea smuggling almost disappeared in a very short time. On the other hand, the Act aimed to establish the absolute monopoly of the East India Company in the international trade of tea.