The Canadian Taxpayers Federation (CTF) asks the federal government to stop its Digital Services Tax (DST). This information follows a report from the Parliamentary Budget Officer (PBO) that revealed the tax will cost $7.2 billion.“The feds need to stop dreaming up new taxes and new ways to make life more expensive,” said Franco Terrazzano, federal director of CTF. “Prime Minister Justin Trudeau should be doing everything he can to make life more affordable, but this Digital Services Tax will mean higher prices for ordinary Canadians.” The PBO predicts that a DST will make taxpayers pay $7.2 billion over the next five years.The DST focuses on big companies that run online marketplaces, social media sites and online ads, such as Amazon, Google, Facebook, Uber and Airbnb. Still, consumers should expect to pay more due to this tax.“It is also expected that businesses in the targeted sectors will adjust their services and prices in response to the new law,” said the PBO. When France introduced a 3% Digital Services Tax, Amazon responded by raising its fees for French sellers by the same 3%. “An economic impact assessment of the French digital services tax shows that about 55% of the total tax burden will be passed on to consumers, 40% to online vendors and only 5% borne by the digital companies targeted by the new tax,” according to the CTF.“Trudeau’s deficit spending would blow through this cash in less than two weeks,” said Terrazzano. “The feds should back down from the Digital Services Tax and instead cut wasteful spending and taxes.”
The Canadian Taxpayers Federation (CTF) asks the federal government to stop its Digital Services Tax (DST). This information follows a report from the Parliamentary Budget Officer (PBO) that revealed the tax will cost $7.2 billion.“The feds need to stop dreaming up new taxes and new ways to make life more expensive,” said Franco Terrazzano, federal director of CTF. “Prime Minister Justin Trudeau should be doing everything he can to make life more affordable, but this Digital Services Tax will mean higher prices for ordinary Canadians.” The PBO predicts that a DST will make taxpayers pay $7.2 billion over the next five years.The DST focuses on big companies that run online marketplaces, social media sites and online ads, such as Amazon, Google, Facebook, Uber and Airbnb. Still, consumers should expect to pay more due to this tax.“It is also expected that businesses in the targeted sectors will adjust their services and prices in response to the new law,” said the PBO. When France introduced a 3% Digital Services Tax, Amazon responded by raising its fees for French sellers by the same 3%. “An economic impact assessment of the French digital services tax shows that about 55% of the total tax burden will be passed on to consumers, 40% to online vendors and only 5% borne by the digital companies targeted by the new tax,” according to the CTF.“Trudeau’s deficit spending would blow through this cash in less than two weeks,” said Terrazzano. “The feds should back down from the Digital Services Tax and instead cut wasteful spending and taxes.”
