On September 21, 2026, Prime Minister Mark Carney addressed a press conference in Ottawa and confirmed that the government will not reverse its earlier decision to eliminate both the digital services tax and the Canadian content contribution requirements for streaming platforms. The announcement reaffirmed the administration’s intent to remove the measures that had been introduced in recent years.
The digital services tax, first implemented in 2023, imposed a levy on revenues earned by foreign digital companies operating in Canada. At the same time, streaming services were required to contribute a portion of their earnings to fund Canadian content production. Both policies attracted criticism from industry groups and political opponents, who argued they added complexity and cost.
According to the government, the removal of the tax and the content‑contribution rule will simplify the tax framework and reduce compliance burdens for companies providing digital services in Canada. Officials said a review of the fiscal impact showed limited revenue generation and a risk of discouraging investment in the digital sector. The Treasury Board is expected to issue guidance on the transition later this year.
Opposition parties expressed disappointment, maintaining that the measures were essential for supporting domestic creators. In contrast, several industry associations welcomed the decision, noting that the elimination of the fees provides greater certainty and lowers operating costs for streaming platforms. The government indicated that it will continue to explore alternative ways to support Canadian content, including direct funding initiatives.
The policy shift comes as Canada prepares its federal budget, with officials suggesting that the fiscal outlook will incorporate other strategies to promote Canadian culture without imposing mandatory fees on digital service providers.