He increased the "alcabala" (sales tax) from 4 to 6%. The economy of the colony was bad, in part because of the separation of the Viceroyalty of the Río de la Plata from Peru in 1776 and the imposition of free trade in 1778. The tax increase (and other increases, such as internal customs duties and the extension of tribute payments from the Indigenous to the Mestizos) were intended to increase government revenues during an economic downturn, but they were viewed as oppressive by the poor, by the merchants, and particularly by the Indigenous. For the first year after their implementation, government revenues rose. (They had been falling for a long time.) Then the reaction began.