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The Canadian government has unveiled plans to allow Indigenous governments to levy a new tax on alcohol, cannabis, tobacco, fuel and vaping products sold in their communities – a move that could net millions of dollars for First Nations and Inuit communities across the country.
Under the proposal, outlined in its 2024 budget, the federal government would negotiate tax administration agreements with Indigenous governments that choose to participate. If an Indigenous government participates in the plan, the tax would apply on purchases of the products the community chooses to tax – regardless of whether the customer has Indigenous status.
