Sugar Act

The Sugar Act of 1764, passed by the British Parliament, was aimed at increasing revenue. It is considered as one of the important acts in American history imposed by the British Parliament. The Sugar Act, also known as American Duties Act/American Revenue Act, was a modified form of the Molasses Act, 1733. The collection of revenue as per the provisions of the Molasses Act didn't take place effectively. This act was therefore an attempt to actually collect the taxes by reducing them to half of that in the Molasses Act (6 pence/per gallon of molasses).

What was the Sugar Act?

The origins of this act can be traced back to the British West Indian sugar growers' demand of restricting the business which took place between the North American colonies and the Spanish & French. The French and Spanish sugar was priced lesser than that of the British West Indies; it was but natural that the business of British West Indian sugar growers suffered. The help of British Parliament was therefore sought by the West Indians. As the British West Indies colonies shared good relations with the Kingdom, their plea was answered by the Molasses Act of 1733. This act, as stated above, proved ineffective in reviving the trade between North American colonies (especially New England). These colonies worked their way around the prohibitions by means of smuggling, bribing custom officials, and other means.

Neglect by the British Kingdom
The six-pence tax imposed by British Parliament was harsh on the business in New England. Had the law been enforced strictly, the distilleries in this region would have suffered massive losses. The beverage of rum produced in these distilleries would then become overpriced and go out of the average person's reach. Rum being a high-demand beverage in the lower strata of the society, the increase in its price would have resulted into social unrest. There were many other reasons for business to suffer in the American colonies. The British Parliament therefore, neglected the strict implementation of this six-pence tax levy. Moreover, merchants in both America and Europe benefited from the business. It was therefore, a wise move by the British to levy a tax and simultaneously neglect the strict enforcement.

Revival of the Molasses Act
End of French and Indian War was the point of time when George Grenville, the British Prime Minister started facing the heat of accumulation of huge public debt. It was at this time, that the revival of Molasses Act would bring in revenues to the Kingdom. The Sugar Act thereby came into force. The following points should help understandthis act of 1764 more clearly.

• The six-pence tax was brought down to half. The important thing to note, however, was that the government intended to enforce the act strictly.
• The taxable goods/items under this act were increased. Apart from sugar, the items like coffee, wine, cloth, silk and tropical foods too were included in this list.
• Supervision of exports from American colonies was made stricter. Lumber and iron were the important items under supervision. Procedure/formalities to be followed before loading cargoes were made cumbersome for shippers.

Consequences of Sugar Act
The economic hardships resulting from this act surfaced almost immediately in the Middle colonies, and especially in New England. There was drop in the American exports and the distilleries suffered to a great extent. With the trade slowing down, people began saving money; this led to currency contraction and the problems of colonies grew worse. The boycott of British goods followed and the 'Bitter Yankee Distillers' played an important part in this move. Americans were not against any kind of trade regulations carried out by the British Parliament. The motive of the Kingdom to increase revenue by such means (enforcing the Sugar Act) was however, doubted. Moreover, the taxes levied by local assemblies (which represented Americans in a true sense) were not at all a cause of concern. The act therefore, received stiff opposition.

The Sugar Act of 1764 summary presented through this article should help in understanding the reasons behind social unrest in America.