(The following article is from the June 16-30,  2010 issue of People's Voice, Canada's leading communist newspaper. Articles can be reprinted free if the source is credited. Subscription rates in Canada: $30/year, or $15 low income rate; for U.S. readers - $45 US per year; other overseas readers - $45 US or $50 CDN per year. Send to: People's Voice, c/o PV Business Manager, 706 Clark Drive, Vancouver, BC, V5L 3J1.)

The new Harmonised Sales Tax, which takes effect in Ontario and British Columbia on July 1, was at the top of the agenda for aboriginal chiefs gathered at the Oneida First Nation near London for the annual meeting of the Association of Iroquois and Allied Indians (AIAI).

     Under the existing provincial sales tax, Ontario First Nations with Indian status cards get a point-of-sale tax exemption on purchases on and off-reserve. Status holders are exempt from the GST only for goods purchased on or delivered to native reserves. The HST will be administered solely by the federal government. There is no provision to extend the exemption for provincial portion of the new tax.

     Randall Phillips, chief of the Oneida First Nation, said the HST was passed too quickly and without First Nations consultation. He said if the exemption isn't added, his community is ready to take action.

     "We've talked about possible slowdowns of the major highways like the 401, and blocking the big international bridges and railway lines," said Phillips.

     Officially, Ontario supports a continuation of the exemption. On May 3, the province and the Chiefs of Ontario signed a memorandum of agreement that "commits the parties to work together to realize the continuation of the First Nation point of sale tax exemption."

     Phillips acknowledged the exemption was a "tough sell" with Canadians. He said there's a misconception that reserves are `tax havens' for status Indians. But he said most reserves lack all but basic commercial amenities and residents are forced to shop off-reserve for most essentials. That means under the HST they will pay full tax on most purchases. That will add an estimated $85-million to $121-million tax burden to Ontario First Nations.

     Provincial and federal representatives met June 7 to discuss the matter again, but a June 2 e-mail from the Finance Department stated policy plainly. It read, "Status Indians will continue to be exempt from the GST/HST on purchases made on reserve, and on purchases made off reserve if the property is delivered to a reserve by the vendor or the vendor's agent. This approach is fully consistent with the Indian Act, which exempts from tax the personal property of an Indian or band situated on a reserve and their interests in reserve or designated lands."

     Speaking at the AIAI. meeting, chief Dean Sayers of the Batchewana First Nation near Sault Ste. Marie, said Canada's position amounts to an attack on sovereignty. He said the treaties negotiated by his people were between sovereign nations and none of the treaties ever specified Canada could subject First Nations to taxation.

     "It's like France trying to tax Mexico," he said, warning that his community was prepared to protest the HST with blockades of railway line throught their territory.

     In a May 11 Sault Star article, Chief Sayers wrote, "The spirit and intent of our relationship needs to be worked towards on the part of the Crown, and we don't see an agenda, we don't see a

meaningful table that's being set, so we have to compel the Crown. Unfortunately, it's going to cause some inconvenience, but we have to. It's getting worse. It's a constant, never-stopping erosion of our rights."

     Sayers said the blockade will go up June 21 and, unless a three-way deal is signed between the province, the federal government, and First Nations, the stoppage would continue, "probably for the summer, maybe longer."

     Anishinabek Nation Grand Council Chief Patrick Madahbee has commended the HST protest efforts by Batchewana First Nation.

     "I applaud the efforts by Batchewana to protect our rights,ö says Madahbee. "This initiative will show the government that we have drawn our line in the sand on this HST issue."