The paper examines the state of First Nation government tax powers and their potential for generating increased revenues. It concludes that taxes are presently a very small percentage of FirstNation government revenues. There are three explanations.
1. First Nation governments have federally recognized authority over only a small part of their potential tax base - property tax, the tobacco components of the GST and, some provincial tobacco taxes. These accounted for roughly 14 per cent of the tax receipts of other governments in 1995 (Canadian Tax Foundation, 1996).