The East India Company refused to pay ____ to the Nawab of Bengal.

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Detailed Solution

The East India Company refused to pay taxes to the Nawab of Bengal.
The company trading in Bengal privately refused to pay taxes to the Mughal Emperor. Bengal province was facing an enormous loss of revenue because of this. The company started to fortify its settlements. It led to conflict because the Nawab of Bengal was against these fortifications. The Nawab took back the company's concessions and asked for large tributes for the company's right to trade. The company was stopped from extending its fortifications, and they were also denied to mint coins. Still, the company was not ready to pay taxes and deprived the Bengal government. In addition, they wrote disrespectful letters to the Nawab and deplored the officials.

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