Washington – The Computer & Communications Industry Association sent a joint trade association letter to key Cabinet members urging the U.S. government to take rapid action to address Canada’s forthcoming implementation of its digital services tax (DST), scheduled to start on June 30. The letter, signed by five other trade associations, also urged prioritization of the removal of the UK’s existing DST, as part of ongoing negotiations.
The signatories call for the U.S. to pursue all options to press Canada and the UK to eliminate their DSTs, which will cost the U.S. billions in annual lost revenue, impede market access, reduce the U.S. tax base, and encourage the proliferation of DSTs in other markets.
CCIA has consistently opposed DSTs and encouraged the U.S. government to prioritize their removal. A CCIA Research Center study found that Canada’s DST will likely impose direct losses of up to $2.3 billion annually for U.S. companies and could result in thousands of full-time U.S. job losses.
The following can be attributed to CCIA Vice President for Digital Trade, Jonathan McHale:
“Despite a looming June 30 deadline, the United States and Canada still have the chance to negotiate a resolution to this longstanding dispute — Canada’s introduction of a discriminatory Digital Service Tax. Proposed and enacted DSTs — including in Canada, the UK, and now, Germany — put U.S. firms at a competitive disadvantage, undermine their exports, and risk costing thousands of U.S. jobs and billions in lost revenue to both firms and the U.S. Treasury. We welcome a strong, visible response from this administration, in line with its existing stance on DSTs, to staunch the proliferation of such unjustified measures from our trade partners.”
