BILL C-15 PART 4 — FIRST NATIONS GOODS AND SERVICES TAX ACT
Status: Royal Assent — March 26, 2026. This Bill is now Law.
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What is this Bill For?
Bill C-15, Part 4 creates a new opt-in framework allowing Indigenous Governments to levy their own sales tax on fuel, alcohol, cannabis, tobacco and vaping products sold on their lands. Ottawa administers and collects the tax, takes a share of the revenue, controls who is on the list and can change the terms by Ministerial order. Whether this is a sovereignty gain or a revenue-sharing arrangement on Federal terms depends entirely on negotiations that happen behind closed doors.
WHO GAINS POWER
First Nations governing bodies gain the ability to enact their own sales tax Law on specified products sold on their lands — a new revenue tool that did not previously exist in this form.
The Minister gains unilateral authority under section 44 to add, delete or vary First Nations names, land descriptions and specified products in Schedule 3 — by Ministerial order, without Parliamentary debate and without requiring First Nations consent.
⚠️ Ministerial schedule power — The Minister can add, remove or vary which First Nations and which products are covered by this framework — by Ministerial order alone, with no Parliamentary vote and no requirement for First Nations consent.
The Federal Government gains a share of tax revenue collected under First Nations Law — the portion not deemed "attributable to the First Nation" is kept by Ottawa as its own property, under a formula Ottawa negotiates.
WHO LOSES POWER
First Nations members lose the protection of the section 87 Indian Act tax exemption — one of the most fundamental treaty-era protections in Indigenous Law — wherever a First Nation enacts a tax Law under this framework. That override was made inside a Budget Bill with no standalone Parliamentary debate.
⚠️ Section 87 override in omnibus Bill — The section 87 Indian Act tax exemption — a foundational Treaty-era protection litigated and defended for generations — is overridden wherever a First Nation opts into this framework. That override was embedded in a Budget Implementation Bill with no standalone Parliamentary debate on the precedent it sets.
First Nations Governments lose control over revenue calculation — Ottawa sets the formula, collects the money, takes its share and pays the remainder. The Nation enacts the Law but does not run the system.
Parliament loses oversight over which Nations access this framework — Schedule 3 membership is determined by negotiation with the Minister, not by Parliamentary vote.
⚠️ Sovereignty conditional on Federal approval — A First Nation can only access this revenue tool if Ottawa agrees to add it to Schedule 3 by Ministerial order. Sovereignty that requires Federal approval to activate is not unconditional sovereignty.
WHO GAINS MONEY
First Nations governing bodies that opt in gain a new revenue stream from sales of specified products on their lands — paid to them by the Federal Government after Ottawa takes its share.
The Federal Government gains its negotiated share of tax revenue collected under First Nations Law — money flowing to Ottawa from a tax enacted by an Indigenous government, on Indigenous lands.
Unnamed "other persons" referenced in section 41(6) gain access to payments from the Consolidated Revenue Fund under Administration Agreements — without being named in the Bill and without a separate Parliamentary Appropriation vote.
⚠️ Unnamed recipients from public funds — Section 41(6) authorizes payments from the Consolidated Revenue Fund to unnamed "other persons" under Administration Agreements — Parliament voted once on the authority; who receives the money and how much is determined by the Minister with no further Parliamentary vote.
WHO LOSES MONEY
First Nations members purchasing fuel, alcohol, cannabis, tobacco or vaping products on their lands lose the section 87 tax exemption that previously shielded those purchases — paying a tax their own Government enacted, collected by Ottawa.
First Nations governing bodies that cannot negotiate acceptable Administration Agreement terms lose access to the framework entirely — Schedule 3 inclusion depends on Ministerial approval, not on the Nation's own decision to opt in.
THE CATCH
The opt-in framing obscures a structural dependency. A First Nation can only access this revenue tool if Ottawa agrees to add it to Schedule 3 — by Ministerial order, at the Minister's discretion, without Parliamentary oversight. Sovereignty that requires Federal approval to activate is not unconditional sovereignty.
Section 42 authorizes payments from the Consolidated Revenue Fund to First Nations and to unnamed "other persons" without any further Parliamentary Appropriation. Parliament voted once on the authority. The Minister decides the amounts and the recipients. Who the "other persons" are is not answered in the Bill text.
The section 87 Indian Act override is the sharpest edge. That exemption is not a bureaucratic technicality — it is a foundational treaty-era protection that has been litigated and defended for generations. Overriding it inside a Budget Implementation Bill, without standalone debate, sets a precedent for how foundational Indigenous legal protections can be modified going forward.
Addendum: The framework may be a genuine sovereignty gain — several Nations will use it effectively and on their own terms. It may also be a revenue-sharing arrangement on Federal terms dressed as sovereignty. The Bill text alone cannot answer that question. What is clear is that Parliament was not given the opportunity to ask it. The Administration Agreements — where the real terms are set — are negotiated behind closed doors, one Nation at a time, with the Minister holding the schedule power throughout.