Google to charge new fee on ads in response to Canada's digital services tax
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Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.
Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.
The company says it will implement a 2.5 per cent surcharge for ads displayed in Canada, starting in October.
"Digital service taxes increase the cost of digital advertising," a Google spokesperson said in a statement. They said the "surcharge is to cover part of the costs associated with complying" with the tax.
The tax, approved in Parliament in June, will add a three per cent levy on foreign tech giants that generate revenue from Canadian users.
A trade group representing Canadian advertisers has warned other companies could follow Google’s lead.
"This will increase the cost of running ads on Google and will likely spur similar action on the part of other platforms if they decide to follow suit," the Interactive Advertising Bureau of Canada said on its website last week.
The digital services tax has drawn opposition from trade associations and business groups in the United States, where many of the tech giants are based.
