PM Trudeau rejects 5% Netflix tax proposal

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Prime Minister Justin Trudeau has flatly rejected a controversial recommendation from a parliamentary committee calling for a five per cent tax on broadband internet services.

A media report this week reveals that Liberal MPs are looking at a levy on Netflix which would make up for slumping cable and television revenue.

This tax could potentially bring hundreds of millions of dollars into the Canadian Media Fund, which already receives a levy on cable bills to finance the production of Canadian content.

Under the new proposal, say the sources, an additional tax would be levied on broadband Internet providers and would ideally apply to high-speed Internet services that allow for the streaming of music, movies and TV shows, but not to slower and less costly services.

Given that more and more homes now don’t even subscribe to television and prefer getting their news and entertainment online or on streaming services notably Netflix, it may be time for the government to eye a lucrative tax source that has for a while been operating under the radar.

The Canadian media industry has seen their advertising revenue eroded as companies increasingly prefer more targeted advertising on social media and Netflix which is soaring in popularity. – CINEWS

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