Leq'á:mel First Nation FNGST Listing

Summary#

The Order Amending Schedule 1 to the First Nations Goods and Services Tax Act (Leq'á:mel First Nation) adds the Leq'á:mel First Nation to the list of Indigenous governments that can impose their own goods and services tax. The order came into force when it was registered on February 8, 2021 and was published in the Canada Gazette on February 17, 2021.

What it does#

• Adds the Leq'á:mel First Nation to Schedule 1 of the First Nations Goods and Services Tax Act, and lists its governing body as the Council of the Leq'á:mel First Nation.
• Specifies that the Leq'á:mel tax power could apply to “each reserve of the Leq'á:mel First Nation that is not shared with another band.”
• Does not itself create a tax. It simply allows the Leq'á:mel First Nation, with agreement from the Government of Canada, to:
  • enact a law imposing a First Nations goods and services tax (FNGST), and
  • enter a tax administration agreement so the Canada Revenue Agency could administer and collect that tax.
• The amendment is enabling only — the band is not required to impose a tax or sign any agreement.

Who's affected#

• The Leq'á:mel First Nation and the Council of the Leq'á:mel First Nation (the community that asked for this change).
• Businesses operating on Leq'á:mel reserves that are not shared with other bands — they would be the ones most directly affected if the band later chooses to impose the tax.
• People buying goods or services on those exclusive reserve lands — prices or receipts could change if an FNGST is enacted.
• The Canada Revenue Agency and the Government of Canada, if a tax administration agreement is negotiated.
• The order itself does not affect other Indigenous groups, according to the government statement.

Why it matters#

• It gives the Leq'á:mel First Nation a legal option to raise local revenue through a sales-type tax similar to the federal GST on its exclusive reserve lands.
• If the band does implement an FNGST, businesses on those reserves may need to collect and remit tax and customers may see price or billing changes.
• For now, there is no immediate tax or cost — the actual tax will exist only if the Leq'á:mel First Nation enacts a law and signs an agreement with Canada.