Canada has rescinded its digital services tax in hopes to advance trade negotiations with the U.S., Canada’s finance ministry said in a statement on Sunday.
The digital services tax would have required American technology companies such as Meta Platforms Inc. and Alphabet Inc. to pay a tax on revenue earned from engaging with online users in Canada
“Rescinding the DST will allow the negotiations to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” said Minister of Finance François-Philippe Champagne.
Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025, the ministry said in their statement.