Grand chief 'relieved' over HST decision

The leader of one of Ontario’s largest First Nation territories said he’s relieved the federal government has come to an understanding and will in fact allow his people point of sale exemptions on the provincial sales tax portion of the harmonized sales tax.

Nishnawbe Aski Nation Grand Chief Stan Beardy said it’s been something he’s been pushing for since the province first announced the change and the federal Conservatives said they would not allow point-of-sale exemptions when the HST was introduced.

Instead they were going to force First Nations people to collect their receipts and submit them for a rebate on the eight per cent PST they paid for goods and services.

Beardy said that stance would have placed undue financial stresses on First Nations people, who traditionally have not had to pay sales tax at the till.

"I’m just really relieved that this came about," Beard said on Friday. "I’m very happy for my people in the far north, because we’re talking about a 13 per cent increase. That’s a real burden on people in the far north, who are already paying the high cost of living."

The exemption will begin on Sept. 1, two months after the HST is introduced, the delay built in to allow retailers and governments to accommodate the change. During July and August First Nations citizens will be reimbursed for the provincial portion of the HST upon submission of their receipts.

The province is expected to release details of the process in the coming days.

Beardy said there will be an education period needed, but he thinks things will run smoothly.

"I think the bottom line is we were after the point-of-sale historical practice of tax exemption, and that’s what we got. I think (during) the two month period I’ll work with my people to make sure they keep their receipts for rebate," Beardy said.

MP Bruce Hyer (NDP, Thunder Bay-Superior North), on Friday said he’s not sure why Conservative Finance Minister Jim Flaherty took so long to agree to allow on-site exemptions.

"Thank goodness," Hyer said. "I … have been trying to persuade Minister Flaherty for months and months and months that there were treaty rights involved here and there was a federal responsibility to make sure that a reasonable compromise occurred.

"Flaherty kept saying this was a provincial responsibility and it was the province. But the province was telling us that it was Flaherty who refused to come to the table. It’s too bad it was at the 11^th hour and 59^th minute, but it looks like we do have an agreement and I think that’s basically a good thing."

The First Nation exemption has been in place in Ontario for 30 years under the Retail Sales Tax.