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SOMBA K'E/YELLOWKNIFE - Sales taxes and a fuel tax increase are off the table for next February's budget, finance minister Michael Miltenberger said at a fiscal update Thursday.

However, the government is still looking to collect $10 million dollars in additional revenue next year and other tax options will be implemented.

Miltenberger released results from the tax discussions held in September. Of the taxes proposed by the GNWT, the public responded favourably to sin taxes - liquor and tobacco - and an increase to the payroll tax.

Earlier this year, the government announced it was looking to collect $40 million in additional revenues over the next two years, with $30 million coming in 2010-11.

He said with the unstable economy, the government would not initiate plans for its 2010-11 revenue collection until later in the fiscal year.Miltenberger committed to meeting with groups each fall over the next three years for discussion on the subject.

"I am hoping that this will prove its value and it will become a new way for the government to stay connected with the people," he said.

These consultations would also involve hatching ideas to generate revenue that do not involve taxes.

"One of the clear messages that we heard from Northerners is that they are not really interested in new taxes," he said.

The government is pursuing the immigrant nominee program and pointed at the agreement signed by diamond mines to attempt to bring more workers - and more tax revenue - to the North.

Nationally, Miltenberger painted a good news, bad news picture.

Miltenberger said the federal government's territorial funding formula would stay the same and health and social program funding - with growth factors built in - would also remain.

However, he said two federal programs in housing and health have either ended or are set to conclude.

The affordable housing initiative elapsed this year. The GNWT had received $17 million in each of the past three years to build housing in the North.

"So for the coming year, that $17 million is no longer there so that capital plan for housing is cut almost in half, whereas our need requirements have not diminished," he said.

As well, the $7 million territorial health access fund for transportation and primary care costs is in its last year.