Seven First Nations Added to FNGST Schedules

Summary#

The Order Amending Schedules 1 and 2 to the First Nations Goods and Services Tax Act adds seven First Nations to the list that can choose to run their own sales tax like the GST on their reserves. The order also updates a name on Schedule 2. It came into force on December 15, 2022.

What it does#

• Adds these First Nations to Schedule 1 of the First Nations Goods and Services Tax Act so they may implement a First Nations Goods and Services Tax (FNGST) on their reserves that are not shared with other bands:
  • Gambler First Nation
  • Kingsclear
  • Madawaska Maliseet First Nation
  • Oromocto First Nation
  • Saint Mary’s
  • Tobique
  • Woodstock
• Updates Schedule 2 to change the name from “Gamblers” to Gambler First Nation for Manitoba.
• Listing a First Nation in Schedule 1 is an enabling step only. It allows the governing body, if it chooses, to:
  • pass a law to impose an FNGST at the same rate and on the same goods and services as the federal GST, and
  • enter a tax administration agreement with the Government of Canada for the Canada Revenue Agency to collect and administer the tax.
• The order does not force any First Nation to impose the FNGST or require agreements to be signed.

Who's affected#

• The seven First Nations named above.
• The Province of Manitoba (name update on Schedule 2 was made with its agreement).
• The Government of Canada, specifically the Canada Revenue Agency and Department of Finance, if any of the First Nations choose to implement the FNGST and sign administration agreements.
• Residents, customers and businesses operating on the listed reserves could be affected later if a First Nation decides to implement the FNGST.

Why it matters#

• If a listed First Nation decides to implement the FNGST, it could create a new local source of revenue for that community.
• Businesses and shoppers on those reserves may see a sales tax applied the same way the GST is applied elsewhere, if and when the tax is put in place.
• The change is procedural and not immediate: listing makes the tax possible but does not create the tax by itself.
• For context, the regulatory statement notes there were already 65 First Nations listed in Schedule 1 and 67 in Schedule 2, with 38 existing FNGST administration agreements in place.