Many things led to this act. After Britain went to war with France, they were in great debt and needed money to pay their soldiers. Colonists also often smuggled goods because they were only allowed to sell to the British and wanted better prices. Parliament passed the Sugar Act in hopes that the Colonists would stop smuggling goods and pay the tax instead so they could pay off their debt.
We've lost so much money from the war with France.
How do you think we can fix it?
We have decided to pass a law called the "Sugar Act."
Although the British lowered the taxes on molasses, they were now allowed to search colonists' homes and accuse them for smuggling. The colonists were outraged that the British could go in their homes and seize goods without going to court. Because of this, they started to boycott Britain's businesses. Britain's businesses lost so much money that parliament had to repeal the Sugar Act.