What was internalexternal taxation

The main purpose of the Sugar Act was to reduce the tax rate of molasses from six pence to three pence per gallon. Moreover, it is to ensure that the new tax could be collected by increased British military presence and controls. The Sugar Act has helped form British admiralty courts for tax violators.

The British admiralty courts are used instead of the British admiralty courts where a judge decided the outcome. Control the trade by successfully closing the legal trade to non-British contractors. Decrease the exercise of smuggling bribery, extortion, and corruption in the colonies which were used to avoid paying taxes.

The Sugar act had taxed more foreign goods including wines, coffee, cambric, and printed calico. Timber and iron were also included in the products list for the Sugar Act therefore timber and iron could only be traded with England.

The American colonists considered the Stamp Act as the internal taxes and import duties as the external taxes. According to Benjamin Franklin American colonists are happy to pay the external taxes but they have objected to the right of Parliament only in laying internal taxes. The Stamp Act is a prime example of internal tax and the Stamp Act had placed duties on a number of goods imported into the colonies, including tea, glass, paper, and paint, etc.

This type of tax has limited use as they are only effective in shipping towns and people like merchants need to pay the external tax. If a group of countries forms a customs union then it will require a common external tariff. One of the characteristics of our internal revenue laws is that they are: a Political in nature; b Penal in nature; c Generally prospective in operation although the tax statute may nevertheless operate retrospectively provided it is clearly the legislative intent; d Answer not given.

Unlike the Sugar Act, which was an external tax i. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More. Table of Contents. Which government agency is charged with setting safety standards? Can you be evicted during coronavirus NC? Accept Decline Cookie Settings. I consent to the use of following cookies:.

Cookie Declaration About Cookies. Internal and external taxes are terms that were used to describe taxes in the s and have largely fallen out of use today. However, they were once the center of lively debate among several countries, primarily in the European hemisphere. One primary point of the debate around these taxes was what the difference between them was, but many politicians of the day, such as William Pitt, agreed on several basic principles.

Internal taxes were the general taxes imposed on items and lands within a nation or colony. These are taxes on goods that most people need or use, and tended to affect most free people in the nation. Since these taxes were so widespread, they were typically decided and collected by the provinces of the nation themselves rather than the entire national government.

These taxes were limited in scope: they tended to take effect only in shipping towns, and only a select group of people, notably merchants, needed to pay them. The amount of the tax was generally carried into the price of the goods themselves and was not levied against the people who then bought the goods.