That Netflix tax is coming after all.

The federal government is taking aim at digital giants including Netflix, Amazon and Airbnb, insisting they pay HST or GST on sales to Canadian consumers, a move that experts warn could raise prices.

Everything from app-store purchases to streaming subscriptions to items purchased on Amazon could be hit under the new proposals, scheduled to be in force from July onwards.

The news came as part of the federal government’s fiscal update Monday.

In a speech to the House of Commons, Finance Minister and Deputy Prime Minister Chrystia Freeland said it was a matter of fairness.

Source: Toronto Star

Date: December 1st, 2020

Link: https://www.thestar.com/business/2020/11/30/ottawa-to-impose-fair-share-of-tax-on-digital-giants-including-netflix-amazon-and-airbnb.html

Discussion

1. “Canadians want a tax system that is fair, where everyone pays their fair share, so the government has the resources it needs to invest in people and keep our economy strong.  ” Why is it “fair” (or not) to tax Netflix subscriptions?
2. Hotels say that it is very fair to tax AirBnB. Why is this?