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Edmonton Journal
14 hours ago
- Business
- Edmonton Journal
Canada won't pause digital services tax despite pressure from U.S., finance minister says
Article content OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Pressure has mounted on Ottawa to pause the tax ahead of trade discussions with the U.S. Article content Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. Article content 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent tax on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Article content Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Champagne said Canada isn't the only country that could be affected by those retaliatory measures. 'These are discussions at the global level,' he said in French. Champagne said there's a wider discussion going on among G7 nations about tax regimes. David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement. Article content Latest National Stories
Vancouver Sun
14 hours ago
- Business
- Vancouver Sun
Canada won't pause digital services tax despite pressure from U.S., finance minister says
OTTAWA — Canada won't put a hold on the digital services tax on big tech companies set to take effect on June 30, the finance minister said Thursday. Pressure has mounted on Ottawa to pause the tax ahead of trade discussions with the U.S. Finance Minister Francois-Philippe Champagne said Thursday the legislation was passed by Parliament and Canada is 'going ahead' with the tax. 'The (digital services tax) is in force and it's going to be applied,' he told reporters before a cabinet meeting on Parliament Hill. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The digital services tax will hit companies like Amazon, Google, Meta, Uber and Airbnb with a three per cent tax on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion US bill due at the end of the month. A June 11 letter signed by 21 members of Congress said U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. Canadian and U.S. business groups, organizations representing U.S. tech giants and American members of Congress have all signed letters in recent weeks calling for the tax to be eliminated or paused. It's set to take effect just weeks before a deadline Canada and the U.S. have set for coming up with a new trade deal, following months of trade conflict between the two countries. Rick Tachuk, president of the American Chamber of Commerce in Canada, said the plan to go ahead with the tax 'undercuts those talks and risks derailing the agreement.' 'A retroactive tax like the DST, weeks before a new deal is supposed to be done, isn't a bargaining chip. It would likely be viewed as a provocation,' he said in an emailed statement. The Canadian Chamber of Commerce and other organizations have warned retaliatory measures in a U.S. spending and tax bill could hit Canadians' pension funds and investments. Champagne said Canada isn't the only country that could be affected by those retaliatory measures. 'These are discussions at the global level,' he said in French. Champagne said there's a wider discussion going on among G7 nations about tax regimes. David Pierce, the Canadian Chamber of Commerce's vice-president of government relations, said in an earlier interview his organization fears Canada could 'aggravate an already very tricky trade discussion with the Americans' if it goes ahead with the tax and the retroactive payment requirement. Matthew Holmes, the chamber's executive vice-president and chief of public policy, said in a statement that a Liberal government announcement on counter-tariffs to protect the steel and aluminum industries Thursday was 'geared toward the 30-day deadline, so we see no reason why DST's timeline shouldn't be as well.' He said a 'short-term pause would still be a prudent move to keep negotiations on track and respectful.' The Liberals first promised the tax in the 2019 election. It was delayed for years due to global efforts to establish a broader, multinational digital taxation plan. Following significant delays in that process at the Organization for Economic Co-operation and Development, Canada went ahead with its own tax. Other countries, including France and the United Kingdom, also have digital service taxes in place. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here .
Winnipeg Free Press
2 days ago
- Business
- Winnipeg Free Press
Calls mount for pause on Canada's digital services tax targeting tech giants
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 all 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. A portion of U.S. President Donald Trump's 'big, beautiful' bill could increase withholding and income tax 'on any holding of an American asset by a Canadian or the U.S. operations of a Canadian-parented company,' the groups warned in an open letter Friday. 'The negative impact of this measure cannot be understated for the Canadian economy,' the letter added. 'Every pension fund, retirement fund, investment account, and deeply interconnected investment funds with American holdings, held by the likes of teachers, municipal workers, elected officials, and regular everyday Canadian families, are at risk.' Canada's digital services tax is set to take 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. A June 11 letter signed by 21 members of Congress says that first payment will cost U.S. companies $2 billion US. It says U.S. companies will pay 90 per cent of the revenue Canada will collect from the tax. A separate letter from U.S. industry associations and the U.S. Chamber of Commerce sent earlier in the month called the retroactive requirement an 'egregious overreach.' The office of Finance Minister François-Philippe Champagne declined to answer when asked whether the government is considering putting the tax on hold. This report by The Canadian Press was first published June 18, 2025.
Economic Times
07-06-2025
- Business
- Economic Times
Canada tables 'One Canadian Economy' Bill to boost domestic trade and infrastructure
Prime Minister Mark Carney's government introduced Bill C-5, the "One Canadian Economy" bill, aiming to dismantle interprovincial trade barriers and expedite infrastructure project approvals. This initiative seeks to unify Canada's internal market, addressing trade tensions with the U.S. The bill targets federal obstacles to trade and labor mobility, potentially boosting the Canadian economy by $200 billion annually. Prime Minister Mark Carney's government has introduced Bill C-5 to dismantle interprovincial trade barriers, expedite major infrastructure projects and to boost domestic trade. It will unify Canada's internal market amid rising trade tensions with the US. (Image Credit: AP) Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Accelerating Nation-Building Projects Tired of too many ads? Remove Ads Responding to US Trade Pressures Legislative Outlook Prime Minister Mark Carney 's government has introduced Bill C-5 , the "One Canadian Economy" bill, to dismantle interprovincial trade barriers and expedite the approval of major infrastructure projects. This legislative move seeks to unify Canada 's fragmented internal market and strengthen its economy amid escalating trade tensions with the United was tabled after a first ministers' meeting in Saskatoon, during which Prime Minister Mark Carney , premiers, and territorial leaders discussed expediting major projects and interprovincial trade. The proposed legislation targets the elimination of federal obstacles to interprovincial trade and labor said that these internal barriers cost the Canadian economy approximately $200 billion annually. By aligning federal regulations with those of the provinces and territories, the bill will create a cohesive national market for the free movement of goods, services, and labor across Canada.'With the 'One Canadian Economy' bill, we are aligning federal rules and regulations with those from the provinces and territories, helping to create one market, not 13,' Carney said on Friday, June Canadian Chamber of Commerce supported the initiative, noting that while it may not entirely counteract the effects of a trade war with the US, it represents a significant step toward internal economic Holmes, the Chamber's chief of public policy, stated that eliminating exceptions to the Canadian Free Trade Agreement is a logical progression toward true free trade within addition to addressing trade barriers, the bill proposes a streamlined process for approving major infrastructure projects deemed of national interest. The government plans to establish a federal office dedicated to expediting project approvals, potentially reducing timelines from up to a decade to just two projects would include those in the energy, mining, and transportation sectors, provided they offer significant economic and environmental benefits, such as carbon emission reductions and support for Indigenous provincial governments' autonomy, Carney has assured that no projects will proceed without their some provinces, including Alberta and British Columbia, have expressed differing views on specific introduction of the "One Canadian Economy" bill comes in the wake of increased US tariffs on Canadian exports. Carney has labeled these tariffs as "unlawful" and emphasized the need for Canada to bolster its domestic approach includes engaging with the oil industry to balance environmental goals with economic have centered around supporting new pipelines and carbon capture initiatives, aiming to position Canada as an energy leader while reducing reliance on U.S. government wants to pass the "One Canadian Economy" bill before Parliament's summer recess, though the timeline remains tight. As a minority government, the Liberals will need to garner support from opposition parties to ensure the bill's outcome will significantly influence Canada's economic strategy and its ability to navigate current and future trade legislative effort represents a bold move toward unifying Canada's internal market and enhancing its economic sovereignty. If successful, it could pave the way for increased domestic trade, improved infrastructure, and a more resilient national economy.
Time of India
29-05-2025
- Business
- Time of India
Prime Minister Mark Carney welcomes US court ruling striking down Trump's tariffs, calls it a 'vindication' of Canada's trade position
Prime Minister Mark Carney is welcoming a major US court ruling that struck down sweeping tariffs imposed on Canada and other nations under President Donald Trump , calling it a 'vindication' of Canada's longstanding position against the measures. The US Court of International Trade ruled Wednesday(May 28) that Trump overstepped his presidential powers under the International Emergency Economic Powers Act (IEEPA), saying the law does not authorize broad-based tariffs without clear links to a national emergency. The court invalidated Trump's controversial 'Liberation Day' duties and fentanyl-related tariffs, which had targeted Canada, Mexico, and China Also Read: Which Trump trade tariffs were overturned in a seismic court ruling, which ones remain 'This decision is consistent with Canada's long-standing position that the US IEEPA tariffs were unlawful as well as unjustified,' Carney told MPs in the House of Commons on Thursday(May 29). Live Events Carney emphasized that while this is a positive development, Canada's economic relationship with the US remains under threat from other protectionist measures. 'Our trading relationship with the United States is still profoundly and adversely threatened by unjustified tariffs on steel, aluminum and the auto sector,' he warned. The tariffs, imposed under different US laws citing national security concerns, remain in place, which serves as a point of ongoing concern for Canadian industry and policymakers. Carney vowed that the new federal government would make it a top priority to 'establish a new economic and security relationship with the United States and to strengthen our collaboration with reliable trading partners and allies around the world.' The ruling also landed with a sense of cautious optimism among Canadian business leaders. 'This is not the end of the trade war,' said Candace Laing, president of the Canadian Chamber of Commerce. 'Business is still looking for stability. Ultimately, the end of this trade war with the US will not come through the courts. It will come when we have negotiated a durable new agreement on trade that is trusted and respected by all involved.' Response from the Trump administration The Trump administration immediately filed a notice of appeal, with White House officials slamming the ruling. Trump himself has yet to comment, but his allies have called the court's decision an overreach by 'unelected judges.' Still, for now, Canadian officials are taking the win. As Bloc Québécois Leader Yves-François Blanchet put it, the ruling 'gives Canada a better position' heading into future trade talks.
