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

Genre-hopping harpist, singer to perform in Parksville

Musician on a quest to demystify harp playing GZAL on Jan. 24

Councillor has concerns about Qualicum Beach pot shop decision

Debate over location, public consultation and timing continues, though commitment already made

Oceanside RCMP arrest man wanted on several outstanding warrants

Hudson David Klassen, 26, picked up in Parksville

Qualicum Beach ‘Seniors Scene’ columnist remembered

Roy Jones described as caring father, energetic seniors’ centre member

Keep focus on helping Canadians at home, Trudeau tells MPs at start of meeting

Trudeau said the Liberals will offer Canadians hope amid issue like climate change and global tensions

Parksville addictions treatment advocate to speak in Port Alberni

Recovering addict Kelly seeks to share more of her story with second event

Call for tighter bail rules after Saudi sex-crime suspect vanishes

Mohammed Zuraibi Alzoabi was facing charges related to alleged sexual assault, criminal harassment, assault and forcible confinement of a woman

Truck convoy honouring Nanaimo boy who died after being struck by vehicle

Trucks left from Victoria and others joined along the way up the Island

12 poisoned eagles found in Cowichan Valley

Improper disposal of euthanized animal suspected

Olympic softball qualifier to be held in B.C.

Tournament is to be held Aug. 25 to Sept. 1

B.C. resident creates global sport training program

The 20 hour course teaches the science and application of interval training at the university level

B.C. VIEWS: Fact-checking the NDP’s speculation tax on empty homes

Negative-option billing is still legal for governments

May plans next move in Brexit fight as chances rise of delay

Some say a lack of action could trigger a ‘public tsunami’

Most Read