Yellowknife (Oct 11/06) - Northerners could get more back on their taxes thanks to lobbying being done by the Canadian Chamber of Commerce.

The business-interest group will lobby the federal government to change three tax laws that could help people living in the North.

Recommendations were brought up at the Chamber's 77th annual general meeting in Saskatoon, Saskatchewan in late September, said John Carter, executive director of the NWT Chamber of Commerce.

The national group wants the Northern residents income tax deduction increased from the current $5,400, he said.

It will also suggest to the federal government to replace the current Northern vacation allowance with a standardized, inflation-indexed Northern vacation deduction, he said.

The third initiative would allow the actual costs incurred during medical travel to be claimed as medical expenses, he said.

"I'm very pleased. It's nice to see Northern issues being recognized," said Carter.

An increase in Northern residents income tax deduction would help every Northerner, no matter what tax bracket they are in, said Steven Ford assistant manager with H & R Block.

"Come tax time, this will help," he said.

The goal for anyone paying taxes is to lower their taxable income as much as possible, and this recommendation would do just that, he said. For some, an increase in the deduction could transfer them to a lower tax bracket, he said.

While an increase in the Northern tax deduction will be beneficial, a change in the vacation allowance could hurt some Northerners, said Ford. Currently the Northern vacation allowance is based on a claim of more than $1,500, said Ford. A standardized, inflation-indexed Northern vacation deduction may be based on a claim much lower than that, he said. "This could be pretty bad for a lot of people who use the travel benefit," he said.

Changing the Northern residents income tax deduction is a strong idea, but more research is needed in terms of changing the Northern vacation allowance, he said.

The Canadian Chamber of Commerce proposed a total of 55 resolutions containing recommendations to the federal government.