United States Exploring Options to Address Canada’s Digital Services Tax
The Office of the United States Trade Representative asserts that it will take necessary measures to stop Canada’s tax on large foreign digital services companies.
Parliament recently approved the government’s proposal to impose a three percent levy on foreign tech giants that earn revenue from Canadian users.
Many of these companies are U.S.-based, prompting the American industry to demand intervention.
The Computer and Communications Industry Association, representing major tech firms like Amazon, Apple, and Uber, has urged President Joe Biden’s administration to initiate formal actions under the U.S.-Mexico-Canada Free Trade Agreement.
A U.S. trade representative official mentions their willingness to utilize all available resources.
While other countries have a similar tax, critics of the Canadian policy wanted Ottawa to postpone it to allow the Organization for Economic Co-operation and Development more time to establish a global framework.
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