Calls mount for pause on Canada's digital services tax targeting tech giants
Minister of Finance and National Revenue François-Philippe Champagne speaks to reporters ahead of a cabinet meeting on Parliament Hill in Ottawa, on Tuesday, June 10, 2025. THE CANADIAN PRESS/Spencer Colby
OTTAWA — Ottawa is under pressure to pause digital services tax legislation that directs large tech companies to make a big retroactive payment by June 30.
Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have signed letters calling for the tax to be eliminated or paused.
The Canadian Chamber of Commerce and other organizations say retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments.
The tax is set to come into effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal.
The tax, which will hit companies like Amazon, Google, Meta, Uber and Airbnb, imposes a three-per-cent levy on revenue from Canadian users.
It's expected to bring in an estimated $7.2 billion over five years and the first payment is retroactive to 2022.
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Anja Karadeglija, The Canadian Press
This report by The Canadian Press was first published June 18, 2025.
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