In response to the tabling of the federal budget, the Coalition for Culture and Media deplores Ottawa’s inaction on the taxation of digital goods and services sold in Canada by foreign companies. The Coalition is all the more disappointed as it has been making appeals on this issue for several months, has collected thousands of signatures in support of said demands, and unfortunately finds itself faced with the government’s complete insensitivity to arguments for tax fairness.
The Coalition, like many players in the Quebec and Canadian economy, finds it inconceivable that the Canadian government should maintain an unfair taxation system that favours foreign companies doing business here using the Internet. This two-tier system exempts these foreign entities from having to collect sales taxes on the goods and services sold here, unlike Quebec and Canadian companies. Federal tax policy needs to be updated to level the playing field for companies competing online.