Ont. aboriginal leaders demand exemption from HST
Some Ontario First Nations leaders are urging the federal government to take their treaty rights into account when implementing the harmonized sales tax (HST) in Ontario and exempt them completely from the new tax.
Leaders representing the Association of Iroquois and Allied Indians say they are willing to consider legal action should the new tax, which is due to take effect in Ontario in July 2010, be imposed on aboriginals.
“One sovereign cannot tax another without their consent, and we have never given that consent to any government,” said the association’s deputy grand chief, Chris McCormick. “It would be in violation of our treaty rights and of the Constitution of Canada.”
The association represents about 20,000 of Ontario’s roughly 170,000 First Nations people.
The association chiefs have embarked on a lobbying campaign, demanding that First Nations people be fully exempt from the HST, which will be administered by the federal government.
In the three provinces that already have a harmonized sales tax (New Brunswick, Nova Scotia and Newfoundland and Labrador), First Nations have received exemptions.
In Ontario, First Nations are currently exempt from the provincial sales tax (PST) and partially exempt from the goods and services tax (GST).
Ontario chiefs worry that when the HST does come into effect, it will be administered in the same way that the GST is now.
Under current GST rules, goods and services purchased by status Indians on First Nations reserves are exempt, but items bought by status Indians off a reserve must be delivered to a reserve to qualify for a GST exemption.
Federal finance officials confirmed to the CBC that the same rules will apply to the HST, as per the tax exemption rules set out in the Indian Act.
The association is also opposed to getting the tax exemption through a rebate system, which it believes the federal government is considering for the HST, rather than receiving the exemption right away at the point of purchase.
The chiefs say a rebate system will be cost-prohibitive for many First Nations members, particularly those on fixed incomes.
“At the point of sale, you can’t afford to purchase things because your spending power is reduced,” said Phillips.
“We’ve been exempt from the tax for decades, and all of a sudden, they are going to tax us?” added McCormick.
The association complains that Ottawa has excluded First Nations from discussions on how to implement the HST.
“When you don’t have dialogue, you violate the spirit of that treaty,” said Randall Phillips, grand chief of the association. “[First Nations] see this as another attack.”
In contrast to Ottawa, the provincial government, the association says, met with First Nations leaders right after it announced the HST in its budget. Provincial officials have also indicated they are open to point-of-sale exemptions.
Further erosion and open disrespect of the FN peoples continues to this day. Discussion a few years back about the HST indicated that FN peoples would still be exempt but now the story changes. What else is new with the government. Why can’t the gov’t just take pay cuts or trim their own expense accounts that the Canadian people pay for? FN peoples are poor enough with all monies spent first through the ministry before reaching the FN people. Good grief!
I’d would like to understand this higher if if anyone has further information? Seems attention-grabbing as I’m not familiar with this subject.
I believe we missed our opportunity long ago, to teach those masses that came to this land to live among us, our teachings of the good mind. The Political tactics of ignoring our treaty rights (I.e. Land Claims)will apply to the imminent HST that will commence in July 2010. We will struggle for our rights…as we always have. I think we need to rethink our strategy.
The government is at it again!!. I am not a FN person and nor do i reside on a reserve.BUT i am a Metis’ with a registered band.We get nothing and no recognition from the government at all..we are exempt from nothing. surely with my ancestors being some of the first here and paving the way for future ancestors has to mean something to Canada.
It puzzles me as to why ALL the aboriginals havent banded together to become one strong nation instead of letting the Gov. keep all of us apart.There is strenght in numbers!! The more the mightier.
As a well educated,tax payer who has worked very very hard..i am tired of us Metis not being seen as a real people but just as some mixed breed no bodies.WE are very proud of who we are and had to fight once again to even be acknowledged.
Come on all you Chiefs and others who have power..rethink your stradegy and include ALL of us..think about it in one way or another ALL of us whether FN or Metis all have one thing in common…OUR ANCESTORS.
thanks for listening
The HST is just another way the government is trying to go against our treaty rights, as far as I’m concerned our treaty is a binding contract and this is just a way to sneak around it to get more money for their own pockets. They say it’s a way to attract business to our country and to help our economy, for starters, how about keeping our businessess here instead of outsourcing from other countries, and maybe if the big shots in the government took a little pay cut things would balance out alot better, but I know greed is a strong urge that can’t be fought by these weak individuals, with there huge salaries, full medical benefits, scholarships for their fat little greedy children, and botox injections to keep their insecure wives looking happy and young, I mean man, try living a day in the shoes of an actual hard working man, who works his/her fingers to the bone just to stay in the poverty bracket…..get a clue government big wig losers.
It’s too bad that even with all of your tax exemptions, you can’t learn to spell properly!
B.B-typical response for someone who clearly does not understand their history. Try growing a brain.