History of the British salt tax in India History of the British salt tax in India Taxation of salt has occurred in India since the earliest times. However, this tax was greatly increased when the British East India Company began to establish its rule over provinces in India. In 1835, special taxes were imposed on Indian salt to facilitate its import. This paid huge dividends for the traders of the British East India Company. When the Crown took over the administration of India from the Company in 1858, the taxes were not replaced. The stringent salt taxes imposed by the British were vehemently condemned by the Indian public.
Government of India Act 1858 the grave defects in the existing system of the government of India. However, before this bill was to be passed, Palmerston was forced to resign on another issue. Later Edward Henry Stanley, 15th Earl of Derby (who would later become the first Secretary of State for India) introduced another bill which was originally titled as "An Act for the Better Government of India" and it was passed on 2 August 1858. This act provided that India was to be governed directly and in the name of the Crown. The Indian Rebellion of 1857 forced the British Government to pass the