Washington — The Computer & Communications Industry Association joined 14 other associations in sending a letter to the U.S. Trade Representative expressing concerns with Canada’s announced plans to pursue a digital services tax. U.S. officials should discourage Canada from pursuing a unilateral digital tax, and instead continue to work within ongoing multilateral discussions regarding necessary changes to global tax rules.
CCIA cited Canada’s plans to pursue a digital services tax as a threat to digital trade for U.S. services in a recent submission to USTR. These plans appear to depart from Canada’s previous position on support for the OECD multilateral tax reform rather than a unilateral measure at the national level. CCIA continues to discourage national digital services taxes, and encourages U.S. officials to deliver a strong response to any country that chooses to move forward with taxes that target U.S. firms.
The following can be attributed to CCIA President & CEO Ed Black:
“At a time where parties are looking to implement the USMCA, it is critical that USTR send a strong and clear signal to Canada that unilateral digital tax measures are unacceptable and threaten to undermine the recent success of the updated North American trade agreement.”
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