The federal government granted an HST exemption for First Nations in Ontario, but B.C. Aboriginals won't receive the same courtesy.
First Nations in B.C. won't pay HST if they live on a reserve and purchase goods and services on that reserve, but HST is applicable as soon as they step off it.
Taxation for First Nations is different in B.C. and Ontario. Aboriginals in Ontario don't have to pay PST off reserves whereas Aboriginals in B.C. do.
"Our fundamental position in B.C. is that we're a sovereign, indigenous nation," said Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs. "Therefore one sovereign nation does not have the jurisdiction or the right to impose a tax regime on another sovereign nation."
Aside from legal complications surrounding the harmonized tax, Phillip's worried the HST will cause more harm to those already living below the poverty line.
B.C. does have a plan to help offset the incremental cost of HST by providing credits to 1.1 million British Columbians. This isn't happening in Ontario, said Jamie Edwards, Communications Manager for the B.C. Ministry of Finance.
Determined from income taxes, the annual credit will be $230 per family member for families with incomes up to $25,000 and individuals with incomes up to $20,000.
Individuals and families with incomes above these thresholds may be eligible for a partial benefit, for example, a family of four with income between $25,000 and $48,000 will receive a partial credit.
Eligible British Columbians will receive the first HST credit payment in early July, along with the B.C. Low Income Climate Action Tax Credit and the GST credit.
See more in The Citizen.
smakowsky@pgcitizen.ca
