The federal government announced late Sunday evening it is rescinding the digital services tax, days after U.S. President Donald Trump demanded it gone and cut off Canada-U.S. trade negotiations.
In a press release, the federal government said it would rescind the tax “in anticipation of a mutually beneficial comprehensive trade arrangement with the United States.”
“Prime Minister Carney and President Trump have agreed that parties will resume negotiations with a view towards agreeing on a deal by July 21, 2025,” the press release added.
Finance Canada said the tax collection, set to begin Monday will be halted and Finance Minister François-Philippe Champagne “will soon bring forward legislation to rescind the Digital Services Tax Act.”
More to come.
