Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsRetail & MarketingNetflix tax to be cut in Canada though streamers still face levyCanada’s system of tax-funded local film and TV productions has been praised for leading to breakout hitsAuthor of the article:Last updated 7 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.In May, Canada’s media regulator said it would increase the Netflix tax to 15 per cent of Canadian revenue, infuriating studio executives and Trump administration officials. Photo by Thomas Fuller/SOPA Images/LightRocket via Getty ImagesPrime Minister Mark Carney’s government plans to scrap a levy on entertainment companies including Netflix Inc. and Walt Disney Co., according to a court filing, after pushback from United States officials and Hollywood studios.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe government intends to “eliminate the base contribution requirement on streaming services,” a lawyer for Canada’s attorney general said in a letter to the Federal Court of Appeal.But streamers will still have to pay.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“Platforms will still be required to reinvest a percentage of their revenues in Canadian and Indigenous content,” said Hermine Landry, a spokeswoman for Culture Minister Marc Miller.Since 2024, Canada has required streaming platforms above a certain size to pay five per cent of the revenue they collect in the country toward Canadian film and television productions. The government plans to provide public funding to replace that money, according to the letter filed in court.In May, Canada’s media and telecommunications regulator said it would increase the levy on streamers to 15 per cent of Canadian revenue. That infuriated Hollywood executives and Trump administration officials including Ambassador Pete Hoekstra, who said the planned move was “making a bad situation worse” by “targeting and taxing U.S. companies, putting up new, discriminatory trade barriers.”Carney’s government threw cold water on the regulator’s plan in June, ordering the regulator to review the 15 per cent requirement, which it said “would impose new costs on the companies providing these services, which could ultimately fall on Canadian consumers through higher prices.”The letter, which was first reported by The Wire Report, was filed in response to a judge’s request for an update on the government’s policy. The appeals court is hearing cases involving the Motion Picture Association — Canada, a lobby group that represents major film and television studios including Netflix, Disney and Sony Pictures.“We intend to direct the CRTC to eliminate base contribution requirements that are outside the audiovisual sector to the broader cultural ecosystems — requirements with which platforms have no immediate connection and that have been tied up in the courts,” Landry said, referring to Canada’s media watchdog.The “base contribution” was the government’s term for the existing five per cent levy.The government expects to publish information in the “coming weeks,” the letter filed to the court said. The Canadian regulator, known as the CRTC, referred questions to the government.The Canadian Association of Broadcasters cautioned “it would be premature to reach any definitive conclusions from this administrative communication.” MPA Canada didn’t immediately reply to a request for comment.Canada’s system of funding local film and TV productions has been praised for leading to breakout hits such as Heated Rivalry and Schitt’s Creek. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.