Latest news with #DepartmentofFinanceCanada
Time of India
30-06-2025
- Business
- Time of India
Carney bends against Trump: In surprise shift, Canada drops Digital Tax to reignite trade talks with US
On June 29, 2025, Canada's government said it is removing the Digital Services Tax (DST) to help restart trade talks with the U.S, as per the Department of Finance Canada. This decision comes from Prime Minister Mark Carney, who wants to get the best economic and security deal for Canada with the U.S. Carney and Trump agreed to restart trade talks and aim to finish a deal by July 21, 2025. The DST was first introduced in 2020 because big tech companies like Amazon were making money from Canadians but not paying fair taxes. Canada wanted to tax big tech Canada had hoped for a global agreement on taxing digital companies but made the DST in the meantime. The tax was supposed to be 3% on digital services revenue from Canadian users if the firm made over $20 million per year, with charges going back to 2022, as per the report by Reuters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cyprus Is Open for Investors - You Might Be Interested Cyprus Invest | Search ads Undo The first DST payment was supposed to be collected on June 30, 2025, but now that's been cancelled. Finance Minister François-Philippe Champagne will now introduce a law to officially remove the Digital Services Tax Act, as stated by the Department of Finance Canada. ALSO READ: Wordle answer and hints today, June 30: Puzzle #1472 – clues, meaning, and full guide to solve it Live Events Carney said the government will only make deals that help Canadian workers and businesses, and this move helps negotiations move forward. Champagne added that the goal is to make Canada the strongest economy in the G7, and scrapping the tax will help with that, as quoted by PM Carney in Finance Canada. Trump pushed back hard On Friday, Trump had suddenly stopped trade talks, calling the digital tax a 'blatant attack' on U.S. tech companies. Trump warned he would put new tariffs on Canadian goods within a week if the tax stayed, according to the report by Reuters. This trade fight came just weeks after a friendly G7 meeting, where both leaders said they wanted a new deal in 30 days. After the announcement to drop the tax, stock markets rose, and good vibes spread to Asian markets too, according to reports. In 2024, the Biden administration had also complained about the tax, saying it broke trade rules in the USMCA deal. Canada is America's second trade partner, just behind Mexico, and one buyer of U.S. goods, so keeping trade calm is important. Canada had avoided Trump's big tariffs from April, but still faces 50% duties on steel and aluminum, as per the report by Reuters. FAQs Q1. Why did Canada remove the Digital Services Tax? Canada removed DST to restart trade talks with the U.S. and avoid new tariffs. Q2. How does the DST affect U.S. companies? It would have charged U.S. tech firms like Amazon 3% on their Canadian digital sales.
Canada Standard
28-05-2025
- Business
- Canada Standard
Government tables a Motion to bring down costs for Canadians
Canada News Centre 27 May 2025, 23:16 GMT+10 May 27, 2025 - Ottawa, Ontario - Department of Finance Canada Today, His Majesty King Charles III delivered the Speech from the Throne - outlining the government's bold and ambitious plan for the future. Key to that plan is bringing down costs so Canadians keep more of their paycheques to spend where it matters most. To that end, the Minister of Finance and National Revenue, the Honourable Francois-Philippe Champagne, today tabled a notice of Ways and Means Motion in Parliament with proposals to: Deliver a middle class tax cut, providing tax relief for nearly 22 million Canadians and saving families up to $840. Eliminate the Goods and Services Tax (GST) for first-time home buyers on new homes valued up to $1 million, saving them up to $50,000, and lower the GST for first-time home buyers on new homes valued between $1 million and $1.5 million. Remove the consumer carbon price from law, following its cancellation, effective April 1, 2025. With these measures, we are delivering change to cut taxes, bring down costs, and put money back in the pockets of Canadians.
Canada Standard
14-05-2025
- Business
- Canada Standard
Government of Canada delivering middle class tax cut
Canada News Centre 14 May 2025, 23:12 GMT+10 May 14, 2025 - Ottawa, Ontario - Department of Finance Canada Last month, Canadians called for a serious plan for change to address the rising cost of living that has eroded Canadians' quality of life. Change that puts more money in the pockets of Canadians. Change that builds a more affordable Canada. The government is delivering that change. The Minister of Finance and National Revenue, the Honourable Francois-Philippe Champagne, today announced one of the first orders of business on the government's legislative agenda for the new session of Parliament: tax relief for nearly 22 million Canadians, saving two-income families up to $840 a year in 2026. Once legislated, the lowest marginal personal income tax rate will be reduced from 15 per cent to 14 per cent, effective July 1, 2025. This tax cut will help hard-working Canadians keep more of their paycheques to spend where it matters most. This measure is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in 2025-26.
