Canada cancels the digital services tax to promote trade negotiations with the United States.

Gate News bot message, June 30, the new Canadian government is engaged in complex economic and security negotiations with the United States to reach an agreement that is most beneficial for Canadian workers and businesses. Prime Minister Carney stated that he is prepared to extend negotiations if necessary, but will not go beyond the necessary timeframe.

To support this progress, Finance and National Revenue Minister François-Philippe Champagne announced that Canada will cancel the Digital Services Tax (DST), paving the way for a comprehensive trade agreement with the United States. Canadian Prime Minister Carney and President Trump agreed to resume negotiations, aiming to complete them by July 21, 2025.

The Digital Services Tax (DST) was introduced in 2020 to tax large tech companies that generate revenue in Canada but do not pay the corresponding taxes. Although Canada has generally favored multilateral solutions, the DST was initially only an interim measure taken during a legal vacuum. The tax was originally scheduled to take effect on June 30, 2025, but it will be abolished, and the legislation to repeal the DST will be submitted to Parliament soon.