Sugar Act

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Sugar Act

Causes

  • Reduced tax on molasses from 6p to 3p
  • Increased Tax on imports of foreign processed sugar.
  • Importing foreign rum was banned
  • Additional goods were being taxed and only between Britain and its colonies
  • Limited train with West Indian Colonies

Effects

  • To incentivise traders to buy molasses from British colonies and pay customs rather than smuggle it from foreign colonies
  • To increase revenue and keep trade between British Colonies
  • To keep trade with British Colonies
  • To increase revenue and trade between British colonies
  • To reduce the amount of foreign coins in British America and maintain strong British trading relationship

Overall summary

Colonists were annoyed by the act because it marked the end of salutary neglect ( limited role of British Government in the running of colonies). Customs officers were now made to work full time and remain permanently in the colonies. The Americans also objected with judges receiving 5% of the smuggled cargo, making it unlikely for people to receive a fair trial. Also being limited to the use of coins, rather than notes made it difficult for some to pay taxes, increasing their debt.

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