This act was passed to assert the authority of the British government to tax its subjects in North America after it repealed the much-hated Stamp Act. The Declaratory Act of 1766 declared that the British Parliament had the absolute right to tax colonies in North America.On March 18, 1766, George III approved Parliament's repeal of the Stamp Act and its passage of the Declaratory Act. This legislation granted Parliament full authority to make laws binding Ireland, effectively nullifying the Irish legislature. All related (37). Recommended. The American Colonies Act 1766 (6 Geo. 3. c. In the colonies, leaders had been glad when the Stamp Act was repealed, but the Declaratory Act was a new threat to their independence. In general the act is descryibed simply as a theoretical gesture or political tactic to ease the passage of the Stamp Act. Under pressure from London merchants, Parliament abolished the Stamp Act in 1766. In the colonies, leaders had been glad when the Stamp Act was repealed, but the Declaratory Act was a new threat to their independence.