Overview

• Parliament approved a digital services tax that imposes a 3% levy on revenue from Canadian users of major tech platforms
• Finance Minister François-Philippe Champagne confirmed today that Ottawa will not delay the tax’s June 30 launch despite mounting pressure from U.S. lawmakers and industry groups
• The levy’s retroactive component is expected to generate roughly US$2 billion in charges for companies including Amazon, Google, Meta, Uber and Airbnb
• Industry associations and American members of Congress have called for a suspension or repeal, warning of potential U.S. retaliation against Canadian investments
• Canada will proceed ahead of upcoming bilateral trade talks with Washington and ongoing G7 talks on a unified digital taxation framework