Saskatchewan may impose sales tax

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Saskatchewan's status Indians will have to pay the nine-per-cent

provincial sales tax on all off-reserve purchases under a Progressive

Conservative government, said leader Bill Boyd.

The proposal is "a coded campaign to appeal to the rednecks and the

promoters of racial intolerance," said Federation of Saskatchewan Indian

Nations Chief Blaine Favel.

The proposal is also unconstitutional and violates the terms of

treaties, he added.

The PST exemption isn't covered in the treaties, but is merely

provincial administrative custom, Boyd said in a May 5 press conference

outlining his party's financial platform for the provincial election.

"Nothing in treaty obligations exempts the Native community from the

provincial sales tax."

Since status Indians use provincial services, they should pay for the

services, he added. Removing the exemption would add an extra $15 to

$20 million to the provincial treasury, which would cut the

nine-per-cent PST to seven per cent.

The province would not take over more responsibility for off-reserve

Indians or give a proportional share of PST revenue to First Nations in

the province under the proposals., Boyd said.

Meanwhile, the ruling New Democratic party and the FSIN are disagreeing

over a proposal similar to the Conservatives' campaign promise.

The province is in ongoing discussions with the FSIN over whether

status Indians would pay the PST, said Associate Finance Minster Ned

Shillington.

Those discussions ended when Favel was elected chief last October, said

the FSIN leader.

"Nothing's on the table," Favel said in a CBC radio interview May 11.

"The former chief had tried to make some arrangements with the

provincial government on taxation. This came to light following my

election.

"We consulted with the Elders and the community leaders. They said

this violated (the treaties,) and it's something we no longer pursue."

Despite this, Shillington said the talks continue.

"I'm not sure the extent to which the current chief has been involved,

but they have in fact continued."