'Netflix tax' for digital media likely to raise prices for consumers, experts say
'Netflix tax' for digital media likely to raise prices for consumers, experts say. TORONTO — The cost of digital services and goods sold by foreign companies like Netflix will go up under a taxation plan the government wants to put in place next year, experts said Tuesday. A regular monthly subscription for a streaming service that delivers video or music would be a simple calculation, with the tax rate applied to the purchase price. But Micallef said it is be more difficult to estimate how much additional tax individual consumers, or businesses, will pay for other types of digital purchases, he said. Something like gaming software might cost little or nothing itself, but offer the option for subsequent charges to add features that make the experience better. He said that the term "Netflix tax" has become highly politicized and is often used as "code" for levelling the playing field between U.S.-based digital media companies and traditional Canadian broadcasters.