The DST, the government said, was announced in 2020 to address large technology companies operating in Canada that “may not otherwise pay tax on revenues generated from Canadians.”
However, it was a source of irritation south of the border with U.S. President Donald Trump calling off trade and tariff talks with Canada Friday due to what he called a “direct and blatant attack” on the U.S.
The statement said the anticipated Monday collection of the DST will be halted with Finance Minister Francois-Philippe Champagne expected to soon bring forward legislation to rescind the Digital Services Tax Act.
“Canada’s new government is focused on building the strongest economy in the G7 and standing up for Canadian workers and businesses,” Champagne said. “Rescinding the Digital Services Tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”
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