Monday, May 17, 2010

Point-of-Exemption Supported by Province


The provincial government is supporting First Nations demands for a point-of-sale exemption when the Harmonized Sales Tax comes into effect this July.

But Aboriginal Affairs Minister Chris Bentley says it's the federal government that must honour the exemption.

"The first step is that we actually need them just to sit at the table," says Bentley. "They haven't seem to be willing to do that which is quite unfortunate. This is an important issue so we'd like them to come to the table."

Bentley still feels there is time to have the tax exemption that's now in place continue once HST is fully implemented.

NDP Leader Jack Layton says Ottawa and the provinces are needlessly provoking potential disruptive action by First Nations over the harmonized sales tax.

Aboriginal groups have threatened to fight the HST through any means possible unless they're allowed to retain the exemption on purchases made outside reserves.

Layton says he'll try to convince Prime Minister Harper he can avoid conflict if he acts now.