Native tax exemptions hurt business Native Tax Exemptions Hurting Small Business
$69.2 million paid back to Indian bands in provincial fuel and tobacco taxes
Fuel tax rebates up 319%, tobacco tax rebates up 1643% since 2000
REGINA: The Canadian Taxpayers Federation (CTF) is calling on the provincial government to eliminate race-based tax exemptions, in light of new figures obtained through Freedom of Information. In 2008-09, businesses located on reserves in Saskatchewan received $54 million in provincial tobacco tax rebates and $15 million in fuel tax rebates. Non-reserve businesses do not have this unfair, race-based tax rebate.
“Reserve businesses not having to pay taxes creates an unfair playing field. It’s extremely difficult for non-reserve businesses to compete,” said CTF-Saskatchewan director, Lee Harding. “It’s no wonder the Shell station at Angus Street and Dewdney Avenue recently closed.”
Harding released the figures today at Sonshine Car Wash and Gas in North Central Regina. The business operates just a few blocks away from the Piapot urban reserve. Dion MacArthur, owner of Sonshine Car Wash and Gas, estimates that cigarette sales have dropped 75 per cent and overall sales 25 per cent, since the Piapot band opened the Cree Land Mini-Mart.
“With provincial gas taxes at 15 cents per litre and cigarette taxes at $4.58 per pack, it is impossible for an off-reserve business to compete for Indian customers,” continued Harding. “Tax-free status also means lower overhead costs, giving a competitive advantage to capture the non-native market as well.”
Since the introduction of the provincial gas and fuel tax rebate program in 2000, native bands have seen the fuel rebates increase from $3.6 million per year to $15.1 million this past year. More significant is the rise in tobacco rebates of $3.1 million in 2000 to $54 million today. One in five tobacco tax dollars collected by the province are rebated back to Indian bands.
“Now that an urban reserve has been introduced to Regina and with more on the way, these figures will only rise,” said Harding.
“It would be great if we could all be exempted from taxes. Until then, all Canadians, regardless of where they live, or their race, should conduct business and pay taxes under the same rules,” Harding said. “Tax exemptions for reserves are not found in the treaties, but in Section 87 of the Indian Act. The province should eliminate its on-reserve tax exemptions and push the federal government to do the same.”
BACKGROUNDER
Backgrounder: Stats on Provincial Fuel and Tobacco Tax Rebates. Sources: Access to Information, Saskatchewan Public Accounts, CTF calculations. 



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Comments
Native American Taxes
Ok, we did take their land, but if you think before that they were at war with each other taking each others land, without mercy and definetly without paying another tribe to use their land. Even if you do think that it was unfair for us to take their land, think about everything that we gave them. We gave them our culture that they are living in, we gave them our technology that they are enjoying. If it were not for us they might still be living in teepees, we advanced their civilization by centuries, does that not count as anything?
I almost cannot stand the "it wasn't fair" arguement. Every civilization, every nation, every type of people, have their own "it wasn't fair" story. Why should the natives recieve money for theirs, it's nothing special, look at what whites did to blacks, they made them into slaves. Not a dime. I encourage native americans to stop living in an era that they weren't alive in, and live in the present. Natives are Canadians and as such should pay taxes along with any other Canadian. I am a white man asking his government for equality, racism should not be tolerated.
This "lobbying effort" by the
This "lobbying effort" by the CFT is embarassing as a resident of Saskatchewan and a taxpayer.
indian status
This information is misleading, and I would argue "race-based". In order to receive a tax exemption you must produce an Indian Status Card, or treaty card as they are referred to in the West (this may be why some people refer to the tax exemption as a treaty right). People without status must pay the tax on goods and services they purchase on reserve. Whether they do or do not is a matter of retail/administrative procedure. Canada does have systems in place to ensure that on-reserve business adhere to these rules, and collect taxes from non-status customers.
This article is simply another attempt to perpetuate negative stereotypes about Indigenous Peoples, and create the social clout needed by right wing agendas to change the current system in favour of their political agenda. Keep up the good work (what little of it your are capable of), Mr. Harding.
Further, all businesses can receive a tax credit in some form or another. If an on reserve business receives a tax refund, then technically it is because they collected taxes that they should not have collected in the first place. They cannot claim tax back that they collect from non-status, and must submit these funds.
Finally, for too long on reserve money, flowing in from the GOC, would flow (and largely still does) straight back into businesses that white people have set-up to service people living on reserve. I have never heard Mr. Harding, or any of his settler nation colleagues, discuss how much of the 9$ billion dollar “myth” actually lands back in the hands of non Indigenous Peoples (of course the CTF would never conduct such a balanced piece of research, now would they?).
So, who's business are these off-reserve retailers losing?
- STTP (some times a tax payer)
First Nations Taxes
You folks are wasting your time on this and embarrassing yourselves. Along with a whole list of social reasons, tax exemption is a Treaty right. Treaty rights were traded for us (non-aboriginals) to use their land. Unless you want to give all the land back to the original people, tax paying is not negotiable. Read your history, or at least the applicable treaties and this should help.
Tax in treaties
Anonymous Taxpayer:
Actually, it is not accurate to argue broad-based tax exemptions are found in the historic treaties. The Canadian Taxpayers Federation did an excellent study on this very topic, which I would recommend to you. The Numbered Treaties do not mention. The closest is the Royal Proclamation Act of 1763 which mentions that Indian lands could only be alienated to the Crown, but even that does not mention anythng about taxes, being as these taxes we are talking about did not exist.
Treaties are not about taxes, but about perpetual benefits to Indians in exchange for large tracts of land for settlement for non-Aboriginals. These benefits included the reserve lands themselves, a yearly payment, promises of on-reserve schools in most Numbered Treaties, some medical benefits in perpetuity. So if the federal government is meeting that obligation, it is meeting the spirit and intent of the treaties. Paying or not paying taxes was not part of the exchange.
Tax exemptions are found in the Indian Act as a means to prevent First Nations from losing their lands through forefeiture for non-payment of taxes. The Indian Act is an archaic federal law, so it would be fair the system exempting on-reserve Natives from paying taxes is itself a colonial imposiion on Indian peoples.
The Nisga'a Nation of BC, as well as other sgnatories of modern treaties, are also giving up their exemption from income and sales taxes.
Witness the Gitxsan people of British Columbia who are considering giving up their exemptions and even Indian status (which is not from treaties also) for a share of resources on their own lands.
First Nation peoples were always governed by traditions of sharing and contributing to the whole. To me, paying taxes is the modern way of doing that.
There are better ways for them to show they are ready for business than to take advantage of other businesses.
As to my knowledge of this topic, I am a Metis analyst with experience in constitutional law and has written for an aboriginal newspaper and work as an aboriginal policy analyst, not to mention proud contributor to the Canadian Taxpayers Federation.
And your initials are J.Q.
Good contribution, thanks!
tax in treaties
The treatment that first nations are currently recieving can not be long term. Like alot of things on this planet it simply is not sustainable. Taxpaying canadians fighting the pressures of productivity in the market will slowly lose out to others poised to accell without the tax burden that we face created by our government, in favor of the first nation people. We need to wake up, first nations included. We as Canadians need to work together as a nation instead of this costly division of races we are currently experiencing. To the first nations people, I cannot say sorry for the past as I had nothing to do with those matters, I only see what is in our future. At this point in history I think we both owe each other thanks, on our part you allowed us to occupie this land. on your part we accellerated you into this global lifestyle that was inevitable all the while sheltering you from other occuping nations that didn't treat their indigeanous people as well as we did. In the end we are all people I dont care where we came from I care where we are going and where we are going is ever competitive markets and lifestyles that the current first nations person living with handouts cant keep up with. I truely think survival of the fittest is going to be our future. And the fittest aren't living off handouts.
I'm a working tax tax paying
I'm a working tax tax paying canadian. I have a wife and two kids. My neighbor is a first nations person with six kids and no job. As far as I see it I may as well walk next door and hand them my cheque. Im sick of this!
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