- All Canadians should be subject to the same laws
- Indian Act should be amended

CALGARY: The Canadian Taxpayers Federation's Centre for Aboriginal Policy Change responded today to the announcement of the "First Nations Advisory Committee" to the Canada Revenue Agency.

"If all Canadians were equal before and under the law, this new level of bureaucracy would not be required," said the Centre's director Tanis Fiss.

A tax exemption for status Indians living and working on-reserve is provided under the Indian Act, and is a fundamental component of the Indian reserve system. Off-reserve native Canadians are subject to the same taxation systems and rates as other Canadians.

"The Indian Act should ultimately be abolished," continued Fiss. "One step to accomplish this goal would be to amend the Indian Act in order for status Indians living and working on reserves to pay the same levels of taxation as other Canadians."

The tax exemptions provided under the Indian Act also apply to native owned businesses operating on reserves. Reserve businesses are able to purchase their merchandise and supplies tax-free. As a result these businesses are able to provide goods and services at a lower cost than competing non-native businesses.

"With the creation of new reserves near urban areas - also known as urban reserves - the competitive advantage tax exemptions provide native owned business will drive many non-native enterprises out-of-business," concluded Fiss.