Canada has scrapped a digital services tax that targeted US technology companies, in an effort to smooth trade negotiations with its neighbour after President Donald Trump described the levy as a “direct and blatant” attack.
The decision to abandon the tax, a 3 per cent levy on revenue for the biggest technology companies, came hours before it was due to come into effect on June 30.
“Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the US to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,” said Canada’s finance minister François-Philippe Champagne in a statement on Sunday night.
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