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The American Revenue Act of 1764, so called Sugar Act, was a law that attempted to curb the smuggling of sugar and molasses in the colonies by reducing the previous tax rate and enforcing the collection of duties.
The Sugar Act was passed by Parliament on 5 April 1764, and it arrived in the colonies at a time of economic depression. It was an indirect tax, although the colonists were well informed of its presence.hat would begin in the later part of the next year when the Stamp Act was passed. The Sugar Act was repealed in 1766 and replaced with the Revenue Act of 1766, which reduced the tax to one penny per gallon on molasses imports, British or foreign.