Non-natives will have to continue paying taxes on the gas they buy in Kahnawake, after gas station owners on the reserve lost their case in front of Quebec Superior court.
A group of about 12 owners wanted to be exempt from charging non-natives tax, but the court ruled against it.
Non-natives, who represent more than 75 percent of their business, will have to continue paying federal and provincial taxes.
The law says aboriginals buying gas on a reserve don't have to pay tax, but non-natives do.
But many on-reserve gas station owners post tax-free prices only, and don't require proof of eligibility, as they're supposed to.
“This is an important ruling for us and we welcome it,” Stephane Dion, spokesman with Revenu Quebec said. “We will take time to analyse the judgment and see what we will have to do to continue enforcing the law.”
The group has 30 days to contest the ruling.