The statement is true regarding the sugar tax as it was new tax on molasses. The purpose of this act was to stop the sugar smuggling by decreasing the earlier tax and implementing new collection duties.
The act was introduced by the new British Prime Minister, George Grenville. Moreover, the aim of this act to decreased the colonial trade.
The goal of this law was three-fold.
1. First, the British felt that smuggling was close to endemic and the rule of law was being curtailed by illicit trade.
2. The second goal was this act to secure British trade by announcing new trade restrictions following the established Navigation Acts.
3. Three, the French Indian War had taken a toll on British finances and the Americans had to pay for their security.
