The seven years war with France was a big financial burden on England. To recover these expenses, England levied taxes on goods imported into the colonies. The Sugar and Molasses Act was passed in 1764 which levied taxes on sugar and molasses. The tax on molasses was a hindrance to the production of wine. It led to the increase of smuggling activities and the colonies faced many problems. The public outcry made the British Parliament to decrease the same.

The stamp act was passed in 1764, which declared that stamp duties were to be paid On all legal documents. The colonists opposed this Act. They said that the British Parliament did not have the right to tax the colonists when they were not given representation in the Parliament. Their slogan was ‘No Taxation without Representation’. The colonists showed their anger by burning the stamps. British Parliament was forced to withdraw this act.

In 1767, the Townsend Act was passed which imposed heavy taxes on Glass, Paper, and Tea. Troops were sent to help the officers in collecting the taxes. When the colonists protested and revolted, troops were sent to put down the same. British troops occupied Boston and in a fight with them, five people lost their Have and many were injured. After this ‘Boston Massacre’, taxes on glass and paper were withdrawn and to show their power and control, tax on tea was retained.

Boston Tea Party: British Parliament passed an Act in 1773 and gave the monopoly of Tea trade to the East India Company. Colonists resented it. Cheaper Tea powder was available in the black market. When the first consignment came to New York and Philadelphia they were forced to go back to England. But again when another ship loaded with Tea packets arrived at Boston in 1773, the colonists disguised themselves as ‘Red Indians’ under the leadership of Paul Revere, entered the ship and threw the Tea boxes into the ocean marking the ‘Boston Tea Party’.