Ending the sales tax exemption will make life less affordable for First Nations and marks a step back in the relationship between the province and First Nations, says NDP Leader Andrea Horwath.

“The HST will add a new 8 per cent tax to everything from clothing to school supplies to gasoline,” said Horwath. “It will drive up the cost of living by the hundreds – if not thousands – of dollars for some of Ontario’s lowest-income families.”

Horwath was joined today by Ontario Regional Chief Angus Toulouse, Grand Council Chief Patrick Madahbee from the Union of Ontario Indians, Grand Chief Stan Beardy from the Nishnawbe Aski Nation and Grand Chief Randall Phillips from the Association of Iroquois and Allied Indians.

First Nations are exempt from paying the 8 per cent retail sales tax on purchases made off-reserve. This has been the case for over 40 years, and has long been recognized as part of Aboriginal and Treaty rights.

“The Premier has talked a lot about forging a new relationship with First Nations,” said Horwath. “To me, a backroom deal with Stephen Harper without any consultation with First Nations sounds a lot like the old, backwards ways.”

By moving to the HST, Ontario surrendered tax decision-making powers to the federal government.

Federal Finance Minister Jim Flaherty recently wrote to the Ontario finance minister rejecting further discussion with First Nations leaders and indicated that the point-of-sale exemption was not on the table.