Canada rescinds digital services tax to advance stalled US trade talks

The Star

Canada scrapped its digital services tax targeting U.S. technology firms late on June 30. It's making a bid to advance stalled trade negotiations with the United States.  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00Canada scrapped its digital services tax-targeting American tech firms late on Sunday, just hours

00:08before it was due to take effect.

00:10The finance ministry said it will soon bring forward legislation to rescind the Digital

00:15Services Tax Act.

00:17The ministry said the tax was announced in 2020 to address the issue where many technology

00:23companies operating in Canada may not otherwise pay tax on revenues generated from Canadians.

00:29The government said both Canada and the United States will resume trade negotiations in order

00:35to agree a trade deal by July 21.

00:38The U.S. administration abruptly called off trade talks on Friday over the tax, saying

00:44that it was a blatant attack.

00:47They had pledged to set a new tariff rate on Canadian goods within a week, and this has

00:51threatened to push U.S.-Canada relations back into chaos after a period of relative calm.

00:57Canada's planned digital tax was 3% of the digital services revenue a firm takes in from

01:04Canadian users above $20 million in a calendar year, and payments were to be retroactive

01:11to 2022.

01:14Canada is the second-largest trading partner for the U.S. It bought US$349.4 billion of

01:22American goods last year, and exported US$412.7 billion worth of goods to the U.S.

Category

Transcript

Be the first to comment

Recommended