The New Brunswick legislature in Fredericton. (Image: Brad Perry)
The New Brunswick government says it will not be renewing tax-sharing agreements with First Nation communities.
Premier Blaine Higgs made the announcement Tuesday, calling the existing agreements “unsustainable and unfair.”
The agreements allow First Nation communities to keep a percentage of the provincial tax revenues they collect on-reserve through the sale of tobacco, gasoline and other fuels.
Currently, the communities keep 95 per cent of the first $8 million in provincial tax revenues and 70 per cent on amounts above that.
Higgs said about $44 million will be refunded to First Nations this year and that number is projected to reach $75 million in 2031-32.