Morneau: No plan for Netflix tax

OTTAWA — Finance Minister Bill Morneau says the federal government has no intention of imposing a Netflix tax, because it would result in a financial hit for middle-class Canadians.

Morneau’s remarks about the online streaming giant came a couple of days after Heritage Minister Mélanie Joly insisted she never agreed to exempt Netflix from any sales tax as part of a deal that has been a political firestorm in Quebec.

Pressed about the issue on Friday, Joly said anyone with concerns about the lack of federal taxes on online streaming services should talk to Morneau because he’s in charge of taxation.

Joly unveiled a cultural policy in September that secured a $500-million pledge by Netflix to set up a Canadian office and fund original homegrown content — but the plan did not include taxes on the company’s service.

The ensuing weeks have seen the provincial government in Quebec vow to tax foreign online businesses, including Netflix, if Ottawa didn’t do so.

The issue has sparked outrage from artists and producers in Quebec’s cultural industry, who have described the lack of taxation on Netflix as an unfair subsidy.

Morneau insisted Sunday that Ottawa has no intention of changing its promise not to tax Netflix. Prime Minister Justin Trudeau has repeatedly ruled out a Netflix tax.

Quebec Finance Minister Carlos Leitao said Sunday that he plans to raise the issue with Morneau as federal, provincial and territorial finance ministers meet for talks in Ottawa, Monday and today.