B.C. First Nations meet with Hansen on HST

B.C. native leaders seeking a harmonized sales tax exemption for the province's First Nations say they were encouraged by a meeting with the B.C. Finance Minister Colin Hansen.

The incoming harmonized sales tax presents a "historic opportunity" for the B.C. government to address hardships faced by aboriginal peoples, said B.C. Grand Chief Stewart Phillip, who hopes to win an exemption similar to the one granted to First Nations in Ontario.

The session with Hansen on Thursday was "very intense" and committee members indicated to Hansen they won't let the issue rest, Phillip said Friday.

"We view taxation as an economic tool to mitigate those absolutely disgraceful conditions of poverty that have become institutionalized throughout this country," said Phillip.

"We believe we can take advantage of this opportunity and revisit the taxation in a manner that would serve to alleviate that poverty."

Ultimately the union wants a point-of-sale exemption from the combined federal and provincial sales tax, similar to an agreement between the Ontario government and First Nations in that province.

The tax is due to take effect in B.C. and Ontario on July 1.

Phillip's group suggested measures be taken to ensure community members and businesses on reserves aren't adversely impacted by the levy in the meantime.

It's also pushing for a First Nations fund from HST revenues that will invest in economic and business initiatives, culture, education and sports.

The finance minister was not immediately available for comment.