The Canadian province is questioning Netflix’s avoiding a federal sales tax by agreeing to invest $400 million in local series like ‘Alias Grace.’
Quebec has unveiled plans to impose a provincial sales tax on Netflix, Amazon and other U.S. video streamers operating locally.
The move follows the federal government last week saying it won’t force U.S. digital services to collect the HST goods and services tax from local subscribers after Netflix agreed to invest CAN $500 million (US $400 million) in local TV series.
“I find it very odd that the federal government would exempt one company from a tax that all companies should collect,” Quebec finance minister Carlos Leitao told reporters in Quebec City. He added the French-speaking province wants to see Netflix’s agreement with the federal government in Ottawa before unveiling his own tax plan for U.S. digital services.
“I need to know what’s in that deal…. Once we have that, then we will be able to prepare a more effective strategy in our dealings with Netflix — and not just with Netflix, but with all of the businesses in this field,” Leitao said.