In bringing forward the draft main estimates to committee in January, the government proposed a number of revenue initiatives to reduce and better manage the forecasted cash deficit for the 2003-2004 fiscal year. On Friday, January 17, 2003, the government gave a full briefing to Regular Members on the proposed revenue initiatives.

Committee members were concerned about the impact of the proposed revenue initiatives upon the already high cost of living in the Northwest Territories.

Proposed revenue increases on tobacco and liquor are forecast to raise respectively $2.5 million; and $1 million for a total of $3.5 million for the government in 2003-2004 and a subsequent $3.5 million for 2004-2005.

While committee members understand that raising "sin" taxes may help decrease their use, they know this is a double-edged sword. Tobacco and liquor price increases impact addicted individuals and their families hardest. Those addicted are often in low or fixed income families -- who would be affected the most. The Standing Committee on Accountability and Oversight reiterated its concerns to the Minister in a letter that stated "a majority of committee members will support the proposed increases to tobacco and liquor taxes."