The purpose of the British declaratory act of 1766 was to repeal the Stamp Act of 1765 and to change and lessen the Sugar Act. The British Parliament repealed the Stamp Act, because it was hurting British trade and this act was used to justify their unfair taxation and to save face in front of colonists who were already upset with the British government. The British Parliament stated that the laws in Great Britain should be the laws in the colonies, but that Parliament could pass laws on America that were binding.