As a way to raise revenues from the 13 colonies in America, the British Parliament passed the Sugar Act on April 5, 1764. It was a law that placed a tax on sugar and other goods, such as coffee and wine. Although the Sugar Act reduced the tax rate of molasses by 3 pence per gallon, this law also put in place measures to ensure the strict collection of this tax.
The strict enforcement of tax collection on molasses lead to a decline in the manufacture of rum in the 13 colonies. A main purpose of this law was to curtail trade between the American colonies and the possessions of Spain, France and Netherlands in the West Indies. This gave England control on trade in the colonies.