U.S. looking at tools to respond to Canada’s digital services tax [Video]

Washington, D. C. –

The Office of the United States Trade Representative says it will do what’s necessary to halt Canada’s tax on large foreign digital services companies.

Last month Parliament approved the government’s plan to add a three per cent levy on foreign tech giants that generate revenue from Canadian users. It means the companies will have to pay taxes on that revenue in Canada.

Many of those companies are based in the United States and American industry is demanding action.

The Computer and Communications Industry Association, which represents many big tech companies including Amazon, Apple and Uber, called on President Joe Biden’s administration to take formal steps under the U.S.-Mexico-Canada Free Trade Agreement.

“With Canada’s DST now law, the time has now come to announce action,” said Jonathan McHale, the association’s vice president of digital trade, in a news release.

It joined 10 other trade associations in sending a letter to United …