The Nekaneet First Nation has become the first band, covered under Treaty, to begin charging a Goods and Services Tax on its reserve.
The move was made Wednesday.
Up to now the only other First Nation in the province to charge GST was the Whitecap Dakota First Nation which implemented its tax on January 2nd of 2009.
Debbie Johnson is a spokesperson for the Regina Tax Office.
She says the tax works the same as the regular GST, except the money generated doesn’t go to Ottawa:
“Now it’s still administered like the GST is for any other business or municipality. Businesses remit their GST on their regular forms but eventually the funds will come back to the reserve.” –
According to Revenue Canada the First Nations GST is an important source of revenue for Aboriginal governments.
They can spend the money generated on programs and services they choose.
Goods and services like basic groceries and residential rents are not subject to the tax.