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

Gravel crushing permit for the top of Promontory in Chilliwack

Council sets several conditions after neighbours come out to public hearing with concerns

Chilliwack Chiefs lose Kevin Wall to suspension

The team’s leading scorer was tagged with his second major of the season Sunday and sits four games.

Man charged with attempted murder in Chilliwack River Valley deemed mentally unfit

Father says son has schizophrenia; Law professor say too many with mental illness in jail

Four chances to see Chilliwack Symphony Orchestra’s Messiah in the Valley

Chilliwack Symphony Orchestra brings Handels’ Messiah to Chilliwack, Abbotsford, Langley, Aldergrove

United churches come together to share warmth in Chilliwack

Members of Rosedale, Chilliwack and Mt. Shannon united churches donate 100 care packages to homeless

VIDEO: Close encounter with a whale near Blaine, WA.

Ron Gillies had his camera ready when a whale appeared Dec. 7

High winds and heavy rain delays, cancels BC Ferries sailings

Island routes between Tsawwassen, Swartz Bay affected

Too many die in heavy truck crashes, B.C. auditor says

Province has no mandatory driver training for commercial vehicles

B.C. city considers scrapping funds for Christmas decorations

Victoria city coun. Ben Isitt doesn’t think the government should pay for any religious symbols

5 to start your day

Man charged with attempted murder in Chilliwack River Valley deemed mentally unfit, Surrey man’s death prompts call for change and more

BCHL player lifts Canada West to second win at World Junior A Challenge

Chilliwack Chiefs player has a three-point performance

Well-known B.C. snowmobile guide killed in rollover accident

Shuswap sledding communty mourns loss of experienced Sicamous snowmobiler

B.C.’s skyrocketing real estate market will ‘correct’ in 2019: analyst

Housing prices in Vancouver are set to rise just 0.6 per cent

Most Read