US Businesses Slam Canada Plan for 5% Streaming Service Tax (1)

US business groups urged Canada to reconsider its plan to tax foreign online streaming services, saying it would be unfair, counterproductive, and out of line with the country’s own past commitments.

The 5% tax, to begin in September, is “both onerous and unnecessary,” and will likely increase prices for Canadian consumers, said Jonathan McHale, vice president of digital trade for the Computer & Communications Industry Association.

McHale and other business advocates also said the streaming tax violates Canada’s obligations under the United States-Mexico-Canada Agreement (USMCA), the 2020 pact that replaced the North American Free Trade Agreement. The tax calls ...