Canada has abolished its tax to target large technical companies in the US after President Donald Trump threatened to cut business talks in response to fees. On Sunday, Canadian government announced This will no longer implement the digital service tax as it works to reach the trade deal with the US by July 21.
Digital Services Tax must have targeted US-based technical companies such as Meta, Amazon, Google and Uber with a three percent fee on revenue earned from online marketplace, advertisement, social media and Canadian user data sales. Tax became officially effective last year, but Canada planned to start collecting payment, which would be rebuiltly applied by 2022 on Monday. The first round of payment will be around $ 3 billion in fees, A trade group Supporting big tech companies.
Trump administration is Similarly pressure To leave its digital service tax in the UK, which also goes after technical companies in the US. Tax is still in effect, although the White House business advisor Peter Navarro Said last month This US is still in “talks” with the UK at a fee.
Last week, President Trump “made a clear attack on our country” to Canada’s digital services and said that America resulted in the resulting “ending all discussions on trade with Canada” Decision to move forward With fee. Canada Killed back with 50 percent overload On steel imports that exceed a newly-known quota.
Canadian Finance and National Revenue Minister, Francois-Filip Champagne, Francois-Filip Champagne, François-Filip Champagne, a statement for Canada’s Finance and National Revenue said, “The cancellation of the digital services tax allows to make significant progress of a new economic and security relations with the United States and strengthen our work to strengthen our work to make our work intend Will be. ” Canada is still facing 25 percent tax On goods imported from the country, with 50 percent tariff on its steel and aluminum.