Northwestern B.C. First Nation to pay taxes for first time

Starting Sunday, members of B.C.'s Nisga'a Lisims First Nation will pay more for items like gas and tobacco.

On June 1, Nisga'a citizens will start to pay GST and PST, as well as taxes on fuel and tobacco as part of the historic Nisga'a treaty ratified in 2000. The Nisga'a were exempt from paying sales tax for a transitional period of eight years after the treaty's signing.

The treaty granted the Nisga'a land, hundreds of millions of dollars and powers of self-government. In exchange, the Nisga'a settled for 1,992 square kilometres of land in the lower Nass Valley and gave up their tax-exempt status.

The tax implementation should not come as a surprise since it has been eight years in the making, said Clay Harmond, the director of finance for the Nisga'a Lisims government.  

"I think most people are accepting this as a reality. It's part of the negotiated settlement under the Nisga'a final agreement with Canada and B.C. and the treaty process," he said. "Taxation should be worn as a badge of honour. It represents full citizenship in Canada."

Residents can also expect to pay more at the pumps regardless of where they are, Harmond said.

"Some people still have their status cards. We would hope they would honor the commitment under the treaty [and] they wouldn't produce a status card to claim an exemption when there isn't one," he added.

PST, GST and taxes on tobacco and motor fuel go into effect for Nisga'a residents on Sunday.