First Nations march against HST snarls Toronto traffic (Aboriginal exemption threatened)

CBC News: : Thursday, December 3, 2009

About 200 First Nations protesters clogged major Toronto streets temporarily Thursday, demanding retention of a point-of-sale exemption from the provincial portion of Ontario's proposed harmonized sales tax. The protesters, who had gathered outside Queen's Park, spilled out onto University Avenue in the afternoon and marched south and then east on Dundas Street. They then marched north on Yonge Street before turning west on College Street and returning to Queen's Park. As of 5:15 p.m. ET, the protest had ended. Toronto police were escorting the march, which halted traffic on Yonge and College. The protesters say the Liberal government did not consult natives enough on the plan to merge Ontario's eight per cent provincial sales tax with the five per cent federal goods and services tax.

"This is where we have to draw our line in the sand," said Grand Council Chief Patrick Madahbee of the Union of Ontario Indians, which represents 42 First Nations. "Already action is being contemplated out in the communities ... and I think this could be an escalating issue right across the province and right across the country."

The First Nations protesters call the harmonization a violation of their treaty rights. Currently, native people qualify for a point-of-sale exemption from the provincial tax. But they fear that the harmonized sales tax will be administered in the same way the GST is. 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 have confirmed to the CBC that the same rules will apply to the HST, following the tax exemption rules set out in the Indian Act. Ontario Aboriginal Affairs Minister Brad Duguid said the province supports demands for a point-of-sale exemption for First Nations. But the issue falls under federal jurisdiction because Ottawa will administer the HST, he said, adding he has urged Ottawa to get behind the move.

The federal government, however, has not yet indicated whether it will support a point-of-sale exemption. In the three provinces that already have a harmonized sales tax (New Brunswick, Nova Scotia and Newfoundland and Labrador), First Nations have received exemptions.