The Sugar Act of 1764

The French and Indian War had doubled Britain's national debt, in addittion they had more spending to do since they had acquired new territory in North America. They needed money to support the soldiers defending the borders. People in Great Britain payed more taxes than colonists. These seemed unfair since most of the war was fought in America. People thought colonists should pay the same amount of taxes and British people since they were all British citizens. So, on April 5, 1764, the Parliament passed a modified version of the Sugar and Molasses Act. Under this Act colonial merchants were requiered to pay a tax on foreign molasses, but due to corruption many merchants evaded these taxes. This affected the British West Indies production of mollases, sugar, and the market for rum. The Sugar Act lowered the taxes, and taxed more foreign goods like wine, pimiento, sugar, cambric and printed calico, lumber and iron. The authorities also became stricter when it came to the duties people had to pay. The enforcement of molasses tax declined the market for rum in the colonies, and thanks to the new taxes the market reduced between the French West Indies, which were great producers of lumber. The Act also reduced the market in which the colonial merchants could sell there goods.