Canada drops controversial digital tax targeting US tech giants

Canada drops controversial digital tax targeting US tech giants

Canada’s federal government has moved to scrap its planned digital services tax. The decision comes as part of new budget legislation introduced by Finance Minister François-Philippe Champagne. The tax had been designed to target major US tech firms but will now be repealed before taking effect. The digital services tax was set to apply retroactively from 2022, requiring companies like Amazon, Meta, Google, Uber, and Airbnb to pay billions. Estimates suggested it would raise around $7.2 billion over five years. A June deadline for the first payments had been looming. The repeal means US tech giants will avoid hefty retroactive charges. It also removes a potential barrier in Canada-US trade discussions. The government’s budget legislation now includes the full cancellation of the turbotax.

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