The Justice Building on Queen Street in Fredericton. (Image: Brad Perry)
A New Brunswick court has sided with the Wolastoqey First Nations in their battle for a share of carbon tax revenues.
A Court of Queen’s Bench justice ruled last week that the province must share carbon tax revenues collected and remitted by on-reserve retailers.
“This is a clear win, and we hope this will now lead us down a new path of fairness when dealing with the Higgs government,” Woodstock First Nation Chief Tim Paul said in a news release.
“As the Court recognized, these agreements, which were the product of detailed negotiations, bring material benefits to First Nations, and also the Crown – sometimes that point is forgotten.”
The First Nations have agreements in place with the government which see them keep between 70 and 95 per cent of tax revenues collected on-reserve through the sale of tobacco, gasoline and other fuels.
When the province adopted its carbon tax in 2020, it lowered the existing tax rates on gasoline and other fuels, leading to an estimated $4.65 million to $4.85 million reduction in revenue for the First Nations.
Lawyers for the province insisted that they are not required to share carbon tax revenues under the agreements.
But in a 61-page decision released Friday, Justice Richard Petrie sided with the First Nations, who argued the agreements require the province to share “all tax revenues” including that of the carbon tax.
Oromocto First Nation Chief Shelley Sabattis said she is pleased that the court’s decision confirms their “clear contractual rights.”
“We hope that the Higgs government will now be prepared to move ahead with these agreements in a respectful and mutually beneficial way,” Sabattis said.
