Netflix Tax Could Yield $1.3 Billion in Revenue, Slightly More and Federal Government’s Estimate says PBO

A new report from the parliamentary budget officer says the government may be slightly underestimating how much revenue it could receive from taxing online services like Netflix.

Currently, foreign-based online services can sell their goods and services in Canada without charging federal sales taxes, leaving it to individuals to pay the outstanding amounts to the Canada Revenue Agency. But hardly anyone does.

The Liberals announced in November’s economic statement that they planned to make foreign-based services collect and remit the Goods and Services Tax or Harmonized Sales Tax, depending on the province.

The fall economic statement estimated that the government would reap revenues of over $1.2 billion over five years starting this year from the measure, which is sometimes labelled a “Netflix tax.” The levy would also apply to other digital services such as Amazon.com Inc.’s Prime Video or the Spotify audio streaming service.

The parliamentary budget officer estimates the bump in tax revenues could be over $1.3 billion over the same time frame.

The PBO report notes there is some uncertainty in the estimate because it based the figure on annual earnings reports from companies and survey data. The office also assumed all companies will comply with the policy.

The report goes on to say that consumers may change their habits if they start facing higher costs from newly taxed services, and switch to other digital products and services.

This content is also available in: Tiếng Việt

#seesomething, saysomething

Culture Magazin magazine always wants to listen and receive contributions from readers.
In case you submit articles about your ideas, interesting social events or hot news that you would like to share with us, email us at info@culturerus.com or inbox us at the FB page – https://www.facebook.com/culturemagazin.
Try our test reporter once. Quality articles will be selected and posted on Culturemagazin’s website and official social networking sites!
#seesomething, saysomething

Discover

Bài Liên Quan

National Charity Started in Winnipeg Helps with Education

Canadians Helping Kids in Vietnam was registered as a national charity on November 25, 1995, when three people in Winnipeg, two...

Vancouver Home Sales Fell in November, but are Still Higher than a Year Ago

The Real Estate Board of Greater Vancouver says November home sales were down from October -- but still well above the same...

Autonomous Flying SpaceX Dragon Has Docked at the International Space Station

SpaceX space with 4 astronauts on a NASA mission, including 3 Americans and 1 Japanese just landed at the International Space Station...

Trudeau Says Vaccine Supply is in “Good Shape” Even as EU Threatens Export Controls on Doses

Prime Minister Justin Trudeau sought to reassure Canadians today that vaccine shots will continue to arrive even as the European Union threatens...

Immigration Lottery Winners Can Formally Apply to Sponsor Parents, Grandparents

Immigrants hoping to bring their parents or grandparents to permanently live in Canada will soon find out if they are lucky enough...

Trudeau Suggests that Canada-U.S Border Restrictions Will be in Place for a Long Time

Canada's prime minister said the government will not lift a ban on unnecessary travel with the United States until the epidemic of...

Trudeau cites uncertainty around pandemic as reason for budget delay

Reported by: The Canadian Press OTTAWA — Prime Minister Justin Trudeau isn’t saying when his government will provide a...

This content is also available in: Tiếng Việt