New tax-sharing agreements reached with the six Maliseet First Nations10 February 2017
FREDERICTON (GNB) – New tax-sharing agreements have been reached between the provincial government and the six Maliseet First Nation communities that aims to promote economic development and job creation in First Nation communities while protecting provincial revenues.
“As a government, we want to continue the positive working relationship we have with First Nations and work collaboratively with First Nations chiefs to encourage job creation and economic development projects in their communities,” said Finance Minister Cathy Rogers. “We are pleased to have reached new agreements with the six Maliseet First Nation communities and are looking forward to continuing the discussion with the Mi'kmaq communities.”
The 10-year agreement addresses many administrative concerns, provides increased control on expenditure growth and encourages economic development.
The First Nations sought to obtain more certainty in the agreements by replacing the current 90-day termination notice with two five-year terms which provide an opportunity for discussions and review. In return, the province introduced the following changes:
- The current 95-5 sharing ratio will be decreased to 70-30 for yearly revenues over $8 million per community.
- First Nation retailers will be required to maintain gasoline, motive fuel and tobacco prices no lower than the lowest price of their local market.
- First Nation retailers with large carrier facilities (card locks) will have 25 per cent of the volumes of motive fuel sold excluded from the revenue sharing calculations.
Negotiations with the nine Mi'kmaq First Nations and the provincial government on renewed taxation agreements are at a preliminary stage.
Earlier today, Premier Brian Gallant announced that the provincial government and New Brunswick’s six Maliseet First Nations have entered into an historic accommodation agreement concerning the development of the Sisson Mine. In addition, the province and Maliseet First Nations have also entered into an agreement to have a joint planning group, referred to as a joint table, examine the cumulative impacts and make recommendations.