The Financial Post reports in its Friday edition that CRTC chairman Jean-Pierre Blais is surprised Canada has not slapped a sales tax on foreign video streaming services like Netflix, a move the Liberal government seems to be inching toward despite previous promises not to do so. The Post's Emily Jackson writes that Mr. Blais remarked on the controversial Netflix tax Thursday during questioning at the Standing Committee on Canadian Heritage hearings on the future of local media in Ottawa. Liberal MP Hedy Fry asked Mr. Blais to respond to previous assertions made to the committee by "all the telecoms" that they are at a disadvantage when it comes to producing Canadian content because they have to pay GST on their services while Netflix does not.
"I can see their argument," Mr. Blais said, referring to Quebecor's Illico, BCE's CraveTV and the failed Shomi joint venture. "(They) are subject to GST payments, whereas other foreign services that still use our banking system through credit card set-offs don't seem to be," Mr. Blais said. Under the Conservatives, the regulator did not heed calls from broadcasters suggesting that a levy requiring foreign streaming services pay into a fund which supports Canadian content.
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