Prime Minister Justin Trudeau has rejected controversial recommendations from a parliamentary committee calling for a five per cent tax on broadband Internet services that allow streaming of music, movies and TV shows. The tax would ultimately have been paid by consumers.
The report released Thursday by the Canadian Heritage committee was viewed as a bid to boost the country’s struggling media sector which is losing revenues to giants like Netflix, Facebook, and Google.
While the report estimated that the proposal would bring in hundreds of millions of dollars in revenues, Trudeau rejected the idea citing his promise to lower taxes for the middle class, not raise them.
The recommendations came after a year of studying the media industry in Canada which has struggled to adapt to new technology and the shift in consumer habits.
Though the intent is to level the playing field for Canadian media companies, the report was criticized by some MPs as a backwards attempt at remedying the issue.
For now, you won’t have to worry about being billed extra for enjoying your favouite online streaming services.