A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services. THE CANADIAN PRESS/AP/Patrick Semansky

Liberals urged to tax e-commerce services like Netflix

Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions

A Liberal-dominated House of Commons committee is calling on the Trudeau government to make Internet giants like Netflix collect and remit sales taxes on their services.

The international trade committee’s report on e-commerce issues, released today, recommends the government apply sales taxes “on tangible and intangible products” sold through online platforms, and tax the profits from those sales.

Foreign-based streaming services without a physical presence in Canada don’t have to collect or remit sales taxes, leaving it up to consumers to pay the sales tax to tax collectors — something that, in reality, rarely happens.

READ MORE: Netflix to invest $500M in Canada as part of feds’ new cultural plan

Prime Minister Justin Trudeau has been adamant that his government wouldn’t increase taxes on online subscriptions, but his finance minister has suggested the Liberals want to ensure online firms pay their fair share of taxes.

Conservatives on the committee say they want Trudeau to honour his pledge not to introduce a Netflix tax, writing in a dissenting report that such a tax would only create additional costs for consumers and hurt Canada’s small businesses.

New Democrats on the committee say the Liberals need to apply corporate income taxes on e-commerce profits earned in Canada by domestic and foreign sellers, provided the income exceeds a specific threshold.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Mulhurst Daze coming up at Pigeon Lake Aug. 4

Parade, show and shine, market and more at Mulhurst Bay

Questions before borrowing for the farm

Every farmer has a different tolerance for debt

Wetaskiwin RCMP investigate theft of almost $140,000 value in Millet

Wetaskiwin RCMP respond to past break and enter at a rural Wetaskiwin property

Writer says ‘New Debt Party’ needs to come back to reality

New pipeline projects doomed to failure if government involved

Wetaskiwin man facing charges after allegedly impersonating war veteran

Wetaskiwin RCMP lay charges for unlawful use of military uniforms/certificates

VIDEO: Trudeau shuffles familiar faces, adds new ones to expanded cabinet

Justin Trudeau shuffles his front bench Wednesday to install the roster of ministers that will be entrusted with leading the Liberal team into next year’s election.

World’s translators push back on forcing Trump interpreter to testify

Democrats had asked translator to testify about Trump’s lengthy conversation with Putin in Helsinki

Canadian government threatens to retaliate if Trump imposes auto tariffs

U.S president had suggested that auto imports pose a national security risk to the U.S.

WATCH: Ronald McDonald House Central Alberta hosts Barnyard Breakfast

FortisAlberta makes $10,000 donation to House operations

UPDATED: Airdrie man charged after Taser-like weapons seized

Canadian Border and Airdrie RCMP charged a man after an attempt to bring the weapons into Canada

Innisfail RCMP charge woman in connection with seizure of eight dogs

Karin Adams, 46, of no fixed address faces dozen charges

Ontario, Saskatchewan premiers join together to oppose federal carbon plan

Saskatchewan is already involved in a court case over the tax

Sylvan Lake is moving toward a greener town

The Town of Sylvan Lake is moving forward with a contract with Fogdog Energy

After cave rescue, soccer boys pray for protection at Thai temple

On Wednesday evening, the boys and coach were released from hospital

Most Read