PoliticsThe federal government will "eliminate" the financial contribution requirement for streamers set by the CRTC and replace it with government funding, it said in a court document.Government told CRTC to revise its 15% fee on large streaming services last monthAnja Karadeglija · The Canadian Press · Posted: Jul 29, 2026 1:15 PM EDT | Last Updated: 1 hour agoListen to this articleEstimated 2 minutesThe audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.Large streamers like Netflix are required to pay a share of their Canadian revenue to support Canadian content under a law passed in 2023. According to a court document, the federal government intends to remove that requirement. (Giordano Ciampini/The Canadian Press)The federal government will "eliminate" the financial contribution requirement for streamers set by the CRTC and replace it with government funding, it said in a court document."We are instructed to inform the court that the government's intention is to eliminate the base contribution requirement on streaming services and to provide government funding to replace those contributions," the attorney general's office said in a document dated July 17.But the Canadian Association of Broadcasters says it has heard a different message."The language in the letter does not align with what we have heard from the government, and we believe it would be premature to reach any definitive conclusions from this administrative communication between the court and one of the respondents," Kevin Desjardins, the association's president, said in a statement on Wednesday.CRTC raising required cash contributions from online streamers for CanconOttawa says CRTC's higher tax on streamers risks price hikes for CanadiansCanada doesn't 'get credit' for rolling back trade irritants, U.S. envoy saysThe office of Culture Minister Marc Miller did not immediately respond when asked to clarify the government's stance or state whether it plans to eliminate the contribution requirement permanently or temporarily.In early June, the government said it would issue a new policy directive to the CRTC after the broadcast regulator increased contributions for large streaming services from five per cent to 15 per cent of Canadian revenue.The government also said at the time it would instead provide the industry with $600 million in annual funding.The contributions, which became known as the "Netflix tax," followed the passage of the Liberal government's Online Streaming Act in 2023.WATCH | Carney says 'Netflix tax' decision made 2 months ago:Carney says decision to roll back Cancon tax is about affordability2 hours ago|Duration 1:54Asked how Canadians should interpret Ottawa's plan to end a tax on large streamers to fund Canadian content, Prime Minister Mark Carney said 'we made that decision with a focus on affordability right out of the gate' and that the decision had been made 'two months ago.'The July 17 court document said the government would publish the new policy directive to the CRTC in the coming weeks. It was submitted in a Federal Court of Appeal challenge of the CRTC's rules by streamers.While Ottawa changed course after the U.S. identified the Online Streaming Act as a trade irritant, the United States Trade Representative said recently Canada wouldn't "really get credit" for the move.The government says the move was primarily about affordability for Canadians.Some Canadian creators have defended the law, saying the tax is an important source of funding.With files from CBC News