Government shuts down idea of internet distribution tax
Posted June 15, 2017 12:31 pm.
This article is more than 5 years old.
OTTAWA (NEWS 1130) – A federal committee has recommended the Trudeau government place a tax on broadband internet distribution, in order to adapt to the rise of digital media. But the government is scoffing at the idea.
The five per cent tax being proposed is already placed on traditional broadcasters, and the money collected goes to creating new Canadian content.
But the committee says some are avoiding this fee through streaming. So Liberal Hedy Fry says that tax should apply to internet distribution since some content is only streamed online.
“And so we wanted to make sure that the playing field was level. That nobody ducks that current five per cent tax that they have. There’s no new tax.”
But Conservative Peter Van Loan sees it differently.
“If you’re applying the five per cent levy to broadband distribution, that’s a Netflix tax.”
The Heritage Minister quickly shot down the idea, issuing a statement saying there will be no tax on internet service providers.
The committee also is recommending a tax credit for print outlets, letting media companies deduct taxes on digital advertising.
