Taxation part of the path of self sufficiency for the Nisga’a

“One of the purposes of the treaty is that Nisga’a citizens be full citizens and partners in Canada with other citizens of Canada,” he said.

.

“Taxation is just a part of that.”-- Clay Harmon, the director of finance for the Nisga'a Lisims Government, explaining some of the background on why Nisga’a citizens are now required to pay provincial and federal sales taxes on Nisga’a land.

After an eight year grace period, taxation requirements under the Nisga’a treaty came into effect on June 1st, meaning that members of the Nisga’a nation now pay both GST and PST on purchases on all Nisga’a lands.

The taxation provision is part of a revenue sharing agreement with the Federal and Provincial governments, with a portion of the Federal and Provincial Sales Taxes now directed towards the Nisga’a government.

The Daily News explained the new direction of taxation policies in Thursday’s paper.

Nisga'a paying GST, PST as nation taps new revenue
BY CARLA WINTERSGILL
The Daily News
Thursday, June 05, 2008

Page one

After an eight-year grace period, the Goods and Services Tax (GST) and the Provincial Sales Tax (PST) now apply to all Nisga'a lands.

The Nisga'a Lisims Government and the Canada Revenue Agency announced the application of GST, effective June 1.

This means that everyone who buys goods or services on Nisga'a land will be subject to paying the GST, including Nisga'a citizens.

"The fact is that for most people, it has no effect," said Clay Harmon, the director of finance for the Nisga'a Lisims Government.

"Most people do their shopping in Terrace and have been paying the GST and PST when they've been buying goods and services that are taxable.”

The taxation comes as no surprise to the Nisga’a, the decision was part of the May 2000 final agreement that the nation negotiated that included an eight-year tax exemption.

Under a revenue-sharing agreement with the provincial government, a portion of the Provincial Sales Tax now collected will be directed toward the Nisga’a government.

They will also recoup a portion of the GST collected.

“That’s appropriate because the purpose of taxation is to provide funding for the government to give services to their citizens,” said Harmon.

“This will be a vehicle to help the Nisga’a.”

“One of the purposes of the treaty is that Nisga’a citizens be full citizens and partners in Canada with other citizens of Canada,” he said.

“Taxation is just a part of that.”

Harmon also sees the new taxation as crucial to the Nisga’a role as a self-governing nation.

“This taxation is another stepping stone,” he said.

“The Nisga’a are a self-governing First Nation.”“As a self-governing First Nation taxation is another step towards self sufficiency.”