Changes to cigarette taxes in the provincial budget are a serious infringement on treaty rights and will cost First Nations businesses millions of dollars, Saskatchewan chiefs say.
First Nations people have been allowed to purchase up to three cartons of cigarettes a week from on-reserve stores without having to pay the provincial tobacco tax.
Three cartons contain 24 packs, 600 cigarettes in all.
Soon, the tax-free limit will go down to one carton a week per person. Anything more than that and the tax — $5.25 a pack — will apply.
Morley Watson, vice-chief of the Federation of Saskatchewan Indian Nations, says the provioncial government has extended its taxing authority beyond its jurisdiction, and First Nations businesses will be hurt because of it.
"This is Indian agent mentality," Watson said in a news release. "The old Indian agent would tell us how much grain, wood, fence posts and other goods we could produce and provide for our families."
The federation represents 74 Saskatchewan First Nations.
The provincial government said the change would help First Nations people cut back. Reserves have relatively high rates of smoking, the province said.
Health promotion groups applauded the change. Many of the serious health conditions that are chronic among First Nations people — such as heart disease, strokes and cancer — are directly linked to smoking, said Rhae Ann Bromley, spokesperson for the Heart and Stroke Foundation.
The government said it also wants to stop tax-free tobacco from getting into the hands of non-First Nations people.
Finance Minister Rod Gantefoer said the new tax-free cigarette limit will take effect once legislation is proclaimed.
The budget Gantefoer introduced Wednesday contains a 68 cent tax increase on a pack of cigarettes.