Canada still plans to introduce a digital services tax in 2024 despite U.S. opposition, Chrystia Freeland said.

  • PenguinTD@lemmy.ca
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    1 year ago

    3% is a good start but…

    You know they are gonna list the DST on the game purchase as well right? I don’t know the qualification for this or is there a cut off in revenue generated in Canada. But service tax, like sales tax, either by subscription or contractual(like cloud service, digital platform, etc) there are no Canadian owned version(that’s big and stable enough), so you ended up need to buy those and they can just slap that 3% on the price tag.

    • Greg Clarke@lemmy.ca
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      1 year ago

      It’s not a sales tax, it’s a tax on big tech revenue earned in Canada. You won’t be paying 3% extra on subscriptions, games, etc

        • Greg Clarke@lemmy.ca
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          1 year ago

          If big tech companies could get away with charging you more they’d be doing it already. These are tech monopolies and taxing them is a good thing.

          Also, it’s a tax on revenue not sales anyway.

          • MooseGas@kbin.social
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            1 year ago

            They have been increasing prices. They have also removed basic services and account sharing.

            It’s not taxed on net income, but gross revenue. Semantically, it’s a “revenue” tax with the same effect as a sales tax. They collect $100 and get to keep $3. I appreciate the wishful thinking, but it will passed on to customers.

            The Canadian solution to every problem is always “more tax”.

            • EhForumUser@lemmy.ca
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              1 year ago

              The Canadian solution to every problem is always “more tax”.

              Well, traditionally it is: Establish a monopoly/monopsony.

              But with US companies already entrenched, it is a little late for that. “More tax” is our fallback plan.

        • Victor Villas@lemmy.ca
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          1 year ago

          So what prices specifically you think might be affected? Oculus Quest and Pixel phones? Cost per ad on Instagram? YouTube Premium monthly subscription?

        • zephyreks@lemmy.ca
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          1 year ago

          Good. Then it’ll help Canadian companies carve out niches for themselves and contribute back to the Canadian economy.