Feds Triple Streaming Tax, Making Life More Expensive
The Canadian Taxpayers Federation is urging Prime Minister Mark Carney to reverse a newly announced increase to Canada’s streaming levy following a decision by the Canadian Radio-television and Telecommunications Commission (CRTC) to raise the rate from 5 per cent to 15 per cent of Canadian revenues.
According to the CRTC, the updated levy will apply to major online streaming platforms with annual Canadian broadcasting revenues exceeding $25 million, including services such as Netflix, Prime Video, and Disney+, as reported by CBC News.
Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation, said the increase runs counter to efforts to improve affordability for Canadians. He argued that higher business costs could ultimately be passed on to consumers in the form of higher subscription prices.
Industry representatives and policy analysts have also raised concerns about the potential impact of the decision. The Motion Picture Association of Canada warned that the increased levy could significantly raise operating costs for streaming services in Canada, potentially discouraging investment and innovation in the sector.
Michael Geist, Canada Research Chair in internet and e-commerce law at the University of Ottawa, similarly cautioned that the policy could lead to higher prices for consumers and make Canada a more expensive market for streaming companies to operate in.
Critics of the decision argue that increasing regulatory costs on digital services may add pressure to an already inflation-sensitive economy, with potential consequences for both consumers and industry competitiveness.
Terrazzano said the federal government should reconsider the policy direction, emphasizing that increased taxation on digital services risks making everyday entertainment more expensive for Canadians.
In response, the federal government has stated that it is currently reviewing the CRTC’s decision.
The CRTC has framed the measure as part of its broader regulatory approach to the broadcasting sector, while debate continues over its economic impact and implications for consumers and industry investment.
