Google to charge new fee on ads in response to Canada’s digital services tax

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Google to charge new fee on ads in response to Canada’s digital services tax
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The company says it will implement a 2.5 per cent surcharge

Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.

The tax, approved in Parliament in June, will add a three per cent levy on foreign tech giants that generate revenue from Canadian users. The digital services tax has drawn opposition from trade associations and business groups in the United States, where many of the tech giants are based. It said in a statement last month the tax “sends a damaging blow” to Canada’s “partnership with allies, the business community and Canadian consumers who will likely bear the burden of this tax.”

The Liberals first promised the tax in the 2019 election, when the Conservatives and NDP also pledged a similar measure.

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