A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services. THE CANADIAN PRESS/AP/Patrick Semansky

Liberals urged to tax e-commerce services like Netflix

Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions

A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services.

The international trade committee’s report on e-commerce issues, released today, recommends the government apply sales taxes “on tangible and intangible products” sold through online platforms, and tax the profits from those sales.

Foreign-based streaming services without a physical presence in Canada don’t have to collect or remit sales taxes, leaving it up to consumers to pay the sales tax to tax collectors — something that, in reality, rarely happens.

READ MORE: Netflix to invest $500M in Canada as part of feds’ new cultural plan

Prime Minister Justin Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions, but his finance minister has suggested the Liberals want to ensure online firms pay their fair share of taxes.

Conservatives on the committee say they want Trudeau to honour his pledge not to introduce a Netflix tax, writing in a dissenting report that such a tax would only create additional costs for consumers and hurt Canada’s small businesses.

New Democrats on the committee say the Liberals need to apply corporate income taxes on e-commerce profits earned in Canada by domestic and foreign sellers, provided the income exceeds a specific threshold.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

North Road proposal draws heat

Public meeting to address Canfor request

First farmers market fosters a sense of community

Vendors and customers alike excited for return of market

Chief Dr. Robert Joseph awarded Order of Canada

An inspiration and role model for all Canadians

Workshop to help businesses find that perfect employee

Selling location and lifestyle one strategy for success

National ecology expert holds workshop in Fort St. James

Use of natural materials vital for environmental restoration

VIDEO: Grand Forks shores up defences as floodwaters rise to peak levels

Canadian Forces, volunteers working to protect low-lying areas

Chilliwack Chiefs moving on to RBC Cup final after thrilling win over Ottawa

Kaden Pickering scored the winning goal in the 3rd period as Chilliwack won their semi-final 3-2.

VIDEO: As floodwaters recede, crews assess the damage to Grand Forks’ downtown

More than four dozen firefighters and building inspectors came out to help

Wellington Dukes pull off epic upset of Wenatchee at RBC Cup

The Dukes are off to the championship game after downing the Wild 2-1 Saturday at Prospera Centre.

Canada to face U.S. for bronze at world hockey championship

Canada was looking to play in the gold medal game for a fourth straight year, but saw 3-2 loss

Searchers for Vancouver Island father turn focus to Cowichan River

Cowichan SAR joined by many other SAR groups, volunteers now determined to find missing man

Vacationers urged to check for stowaway bats that could carry deadly disease

‘White-nose syndrome’ has killed millions of bats in North America, but hasn’t arrived in B.C. yet

Are B.C.’s gas prices enough to keep you from travelling May long weekend?

Gas prices in B.C. ranging from 125 cents per litre to more than 150 cents

Prince Harry, Meghan Markle wed in Windsor as millions watch

Windsor sparkled on a warm spring day as tens of thousands of people jammed its quaint roads

Most Read