Mr. Speaker, in recent years, all the provinces have moved from calculating their tax as a percentage of federal tax to basing it directly on income.
Like the provinces, we want to reduce our dependence on the federal government. I am announcing that starting in 2003, the Northwest Territories will also base its personal income tax on income, not on basic federal tax. This change will give us more flexibility to design our tax system to meet the needs of the Northwest Territories population. The Canada Customs and Revenue Agency will still collect our income tax and Northwest Territories residents will still only need to file one tax return.
However, we recognize that Northerners will need some time to understand the new system and we want to take the time necessary to consider the options open to us under the new system. Therefore, Mr. Speaker, I am proposing the establishment of a Minister's Advisory Committee on Personal Income Tax, composed of residents with experience in the tax area, which will look at the options and make recommendations to me by the fall of this year. Based on this input, I plan to bring forward the necessary legislation in 2002 in order to make the changes effective for 2003.