US Opposes Canada’s Digital Services Tax

The United States Trade Representative’s (USTR) office said on Tuesday that it opposed Canada’s proposal to have a digital services tax (DST) and urged Canada to drop the plans.

“The United States urges Canada to abandon any plans for a unilateral measure and instead redouble its commitment to the rapid implementation of Pillar One of the Oct 8 OECD/G20 agreement and the negotiation of a multilateral convention”, the USTR office said in a statement.

The office said that the proposed bill singles out American firms for taxation while excluding national firms in similar lines of business.

The Canadian government reassured that it had remained in contact with the U.S. regarding the issue.

“It is our sincere hope that the timely implementation of the new international system will make this Digital Services Tax unnecessary”, a spokesperson for Canada’s deputy prime minister said.

Canada proposed the measure last year in a bid to tax big digital companies, saying it would stay in place until major nations come up with a coordinated policy on the issue. Such treaty is yet to be implemented.


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