First Nations
Am I, as a First Nations individual, requried to pay tobacco tax on cigarettes and other tobacco products purchased on a reserve?
The Indian Act (Canada) provides that Indians, as defined under the Act, are not subject to taxation in certain cases. This legislation supercedes provincial tax legislation. To reflect this, Ontario exempts Indians from paying tax on unmarked cigarettes and other tobacco products purchased on a reserve for their exclusive use in quantities based on band membership, both on and off reserve, as set out in Ontario Regulation 649/93.
Approved First Nations retailers obtain unmarked cigarettes and other tobacco products from tobacco tax collectors without payment of tax. All others, except diplomats, must pay the tax when acquiring tobacco products from wholesalers.
