Key Takeaways:
- The proposed measure was unveiled in Canada’s April budget.
- The country stated that it would remain in place until significant nations develop a coordinated approach to taxing digital behemoths, such as Alphabet Inc’s Google and Facebook Inc.
According to the finance ministry, Canada is still willing to levy a tax on corporations that provide digital services if necessary in an announcement that is sure to irritate the United States.
OECD has since compromised on a common approach to ensuring that firms payment their fair share of taxes. Still, a treaty to enforce this has yet to be enacted.
“It is the government’s sincere hope that the timely implementation of the new international system will eliminate the need for this,” the update stated.
Google expressed its displeasure. Canada’s proposal to levy a tax “would jeopardize the multilateral consensus and raise Canadian prices. We hope it reconsiders, “said Jose Castaneda, a spokesman.
Washington is vehemently opposed to the idea. In July, US Trade Representative Katherine Tai urged her Canadian counterpart to withdraw the proposal.
“In an period of rising trade tensions, this is yet another slap in the face to the United States,” said Mark Agnew of the Canadian Chamber of Commerce in an email.
Canada threatened to impose tariffs on a variety of American goods last week unless US lawmakers rejected a plan to provide tax breaks for American-made electric vehicles.
Source: thehindu News
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