Cable / Telecom News

Quebec may act and impose sales tax on Netflix

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Netflix has said it would, if asked

QUEBEC CITY – Both the Quebec Minister of Culture, Luc Fortin, and Finance Minister Carlos Leitao, told reporters Tuesday they want to force Netflix to collect sales tax from users in the province, according to several reports.

While one immediately wonders why, if they’re worried about fairness, they wouldn’t just allow competing Canadian services to drop the provincial sales taxes they are currently collecting, the issue has been a serious hot button since federal Heritage Minister Mélanie Joly announced her new vision for Canadian content – in conjunction with a $500 million promise to invest by Netflix.

Quebec provincial politicians also want to take a look at the agreement between the federal government and Netflix to see just what the big U.S.-based video streamer has promised, but this deal was procured under the Investment Act, which has provisos for confidentiality.

For what it’s worth, Netflix told Cartt.ca last year it would collect sales in any jurisdiction it was told to do so. “Netflix collects and remits tax wherever we are legally obligated to do so,” a company spokesperson emailed to Cartt.ca when asked their opinion on the matter.