Territorial sales tax not coming to N.W.T., says finance minister

The N.W.T. government is not plotting to introduce a territorial sales tax, said Finance Minister Caroline Wawzonek in a press release Friday.

Therelease came on the heels of local media reports that raised the spectre of a new sales tax.

In the news release, Wawzonek acknowledged that MLAs had asked her to consider new ways to generate "own-source revenues," and that taxation was discussed in recent public dialogue.

But, she said, the territory is "notadvancing any initiatives" towardintroducing a sales tax.

"Growing the private sector economy is a key priority for this government, which would not be consistent with the introduction of a sales tax at this time," Wawzoneksaid.

"While a sales tax is one common way that governments raise revenues to fund the delivery of important programs and services, the GNWT[Government of the Northwest Territories] believes that the introduction of a sales tax at this time would lead to an increase in the cost of living to N.W.T. residents that would likely offset potential revenue increases and run counter to our efforts to grow the economy."