Canada caves to Trump and creates digital service tax on large technology

In its battle with US President Donald Trump, Canada has folded the definitions by canceling the proposed digital services tax (DST) on major technology companies, government Declare. Friday, Trump Commercial conversations ended On the tax, which was called “a direct and strict attack on our country.” However, discussions resume Now that Dest has ended, according to Canadian Prime Minister Mark Carne.

DST has been valid since last year, but Canada was scheduled to collect the first payments, which reached about two billion dollars on June 30. However, this will now be stopped. The Ministry of Finance wrote yesterday: “To support these negotiations, the Minister of Finance announced … today that Canada will work to cancel the digital services tax (DST) in anticipation of a comprehensive commercial arrangement beneficial to both parties with the United States.”

With Dest, Canada Scheme To apply a 3 percent tax on content from large technology companies that depend on participation from Canadian users. The justification was that 70 percent of the country’s advertising revenue spending (estimated at $ 25 billion this year) goes towards companies such as Google and Meta, but those companies do not pay corporate taxes in Canada. Some of the money collected under DST had been transferred to the media companies that were affected by the advertising dominance of Google and Meta.

The tax did not oppose the United States government only under Biden and Trump’s departments, but companies in Canada as well. Local companies were concerned that they would increase their costs after Google said, for one, that it would increase advertising rates by at least 2.5 percent in Canada to cover the DST cost.

Surrender is a great victory for Trump and the satisfaction of the beneficiaries of the technology company. However, Canada has been exposed to the Trump tariff by 25 percent by billions of minerals, minerals and other commodities, so the Carney government is likely to be necessary to sacrifice daylight saving time.