NEW ‘NETFLIX TAX’ FOR MANITOBANS COMING AS PART OF LATEST PROVINCIAL BUDGET

Streaming services, online marketplaces, online accommodation platforms will be subject to PST as of December

Beginning in December, streaming services such as Netflix will be required to charge provincial sales tax in Manitoba. (Craig Chivers/CBC)

Manitobans will be soon be paying more for Netflix and Spotify subscriptions, among others.

Beginning in December, streaming services, online accommodations and online marketplaces will be required to charge provincial sales tax, the province announced as part of its 2021-22 budget, which was unveiled Wednesday.

The new tax measure — often dubbed the “Netflix tax” — is expected to bring in an additional $8.8 million this fiscal year and $26.5 million during its first full year of implementation.

It will mean a stay at an Airbnb rental in Manitoba, a monthly subscription to a streaming service or buying products from third-party sellers on sites such as Amazon or Best Buy will be subject to Manitoba’s seven per cent PST.

That means a Netflix subscriber with a standard $14.99 monthly plan will pay an additional 90 cents per month, or roughly $11 per year, for the service.

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