The Trudeau government has announced its intention to bring in a Fuel, Alcohol, Cannabis, Tobacco, and Vaping (FACT) sales tax framework, specifically targeting Indigenous people as a “significant part of reconciliation”.

As part of the new tax, the federal government is negotiating First Nations Goods and Services Tax agreements with those Indigenous governments who are interested in implementing the tax and trying to facilitate similar arrangements between interested Indigenous governments and provincial and territorial governments.

According to the budget, this is being done “to enable Indigenous communities to meaningfully benefit from resource development.”