The Sugar Act (1764) was a tax passed by the British to pay for the Seven Years War, called the French and Indian War in America. It taxed sugar and decreased taxes on molasses in British colonies in America and the West Indies. This restricted smuggling. It was also a use of mercantilism. It was one of the first taxes that led to protests in the Thirteen Colonies. The Sugar and Stamp Acts were done away with in 1766.