The US wants to abolish the tax on digital services in Canada


Published on 07/07/2023 at 11:43 am

US Trade Representative Katherine Tai and Canadian Foreign Trade Secretary Mary Ng met face-to-face. (Photo: The Canadian Press)

WASHINGTON — The US trade representative is urging his Canadian counterpart to drop the proposed Digital Services Tax (DST) and allow US home shopping north of the border.

US Trade Representative Katherine Tai and Canada’s Foreign Trade Minister Mary Ng met face-to-face in Mexico during two meetings in Cancun that ended Friday.

This annual meeting is an opportunity for the three countries to take stock of progress made under the Canada-United States-Mexico (CUSMA) Agreement.

According to a US report on Thursday’s meeting, Ms Tai stressed to Mr Ng Canada’s obligation under the deal to license US home shopping TV channels such as QVC.

She also reiterated long-standing US concerns about the digital tax targeting foreign companies that derive revenue from Canadian user engagement, content or data.

The 3 percent tax would come into effect in January, barring ongoing international efforts to introduce a multilateral tax system by then.

Tyrone Hodgson

Incurable food practitioner. Tv lover. Award-winning social media maven. Internet guru. Travel aficionado.

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