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

Lacombe Council passes second reading of cannabis bylaw

Public hearing sees opposition to bylaw; third reading coming Sept. 10th

City looking to invest $750,000 into Lacombe Market Square

First reading of bylaw given to help bridge the gap between developers

Central Alberta Buccaneers come up short against Monarchs

Bucs’ lose star quarterback in heartbreaking affair

Town of Blackfalds issues fire ban

Due to the extreme dry, hot conditions, the Town of Blackfalds has issued a Fire Ban.

Ponoka man faces 95 theft-related charges

Police recover stolen license plates, mail, tools

WATCH: Ellis Bird Farm hosts annual Bug Jamboree

Visitors enjoyed getting up close and personal with butterflies, beetles and bees

Police chiefs call for stricter controls on pill presses to fight opioids

Canada’s police chiefs are urging Ottawa to beef up its fight against the opioid scourge by closely vetting people who import pill presses

Ponoka Traffic Unit investigate scooter incident

A motorcyclist appears to have lost control of her Suzuki scooter on Highway 2 north of Ponoka

Pesticides linked to bee deaths will be phased out in Canada, sources say

Neonicotinoids, or neonics, are a class of pesticides used by farmers and hobby gardeners alike

Wildfire smoke blankets B.C. and Alberta, prompting air quality advisories

About 25 new wildfires were sparked between Monday morning and midday Tuesday

Stettler woman facing 67 fraud-related charges appears with co-accused

Crown likely proceeding with more serious charge of indictable offence

Wetaskiwin Co-op robbed of laser tool, propane torch

Wetaskiwin RCMP attempting to identify two individuals involved in numerous thefts

Judge OKs Weinstein suit, cites casting couch’s history

Actress Kadian Noble can sue disgraced Hollywood mogul for violating sex trafficking laws

Employers to raise salaries 2.6% on average next year: report

Firm points to factors such possibility of more trade protectionism, rising interest rates

Most Read