First Nations rally on Parliament Hill against HST

Hundreds of First Nations protesters gathered on Parliament Hill Wednesday to rally against the harmonized sales tax, saying it violates their treaty and constitutional rights.

The protesters marched from the Parliament buildings to the offices of the Finance Ministry a few blocks away.

First Nations people and their communities are among the most marginalized and impoverished in Canada, and the HST will place an additional undue hardship on them, said Angus Toulouse, the Assembly of First Nations regional chief for Ontario.

Aboriginal residents of Ontario are concerned that when the HST does come into effect, it will be administered in the same way that the goods and services tax (GST) is now.

In Ontario, First Nations are currently exempt from the provincial sales tax (PST) and partially exempt from the GST.

Under current GST rules, goods and services purchased by status Indians on First Nations reserves are exempt, but items bought elsewhere must be delivered to a reserve to qualify for a GST exemption.

Federal finance officials confirmed to the CBC that the same rules will apply to the HST, as per the tax exemption regulations set out in the Indian Act.

"This recent action on the part of government has renewed the call within First Nations in Ontario, and I believe across Canada, to reject all forms of taxation on our people, including the GST, which was similarly imposed in spite of objections many years ago," Toulouse said in a written statement.

Ontario Aboriginal Affairs Minister Brad Duguid said in November 2009 that 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.

Federal Finance Minister Jim Flaherty wrote to Ontario Minister of Finance Dwight Duncan in December 2009 and said the federal government would not offer HST exemptions for aboriginals.