How much has Canada lost by repealing the Digital Services Tax? This Bloc MP wants to find out

Break out your calculators. Bloc Québécois MP Gabriel Ste-Marie (Joliette, Que.) is asking the federal government to investigate how much revenue Ottawa sacrificed by repealing its Digital Services Tax (DST). Earlier this week, Ste-Marie sponsored a petition calling on Prime Minister Mark Carney (Nepean, Ont.) to reinstate the tax and investigate the amount of foregone revenues — which could stretch into the billions. The DST was introduced by ex-finance minister Chrystia Freeland but repealed last year by the Carney government during bilateral trade discussions with the U.S. The policy implemented a three per cent tax on large tech platforms, including Meta Platforms Inc., Alphabet Inc., and Amazon.com Inc., but faced staunch opposition from U.S. President Donald Trump’s administration. Various countries, including the U.K., France, and Italy, have introduced similar taxes ranging between two and five per cent of total revenues. Carney’s decision to eliminate the DST last July was largely seen as a concession at the bargaining table, as the government press release said it made the maneuver to “advance broader trade negotiations” with the U.S. after Trump threatened to suspend talks if the policy was not repealed. More than a year later, Carney walked away from negotiations after months of trade talks between Canadian and American representatives remained fruitless. “This tax concession has yielded no lasting benefits, as U.S. tariffs against Canada continued to be imposed, renewed and expanded following the repeal, and deprived the Canadian Treasury of significant tax revenue,” reads the petition, initiated by Sebastien Denommee, a construction worker from Saint-Jean-sur-Richelieu, Que. “The repeal set a dangerous precedent by directly undermining a Canadian tax law duly passed by the House of Commons.” “That law was repealed in exchange for non-binding trade assurances from a foreign government, thereby threatening our entire tax system.” The petition, which opened on Wednesday, currently boasts 18 signatures across eight different provinces. In an interview with The Wire Report, Ste-Marie, whose party has publicly called for the DST to be reinstated, said the sovereigntists will keep pressing the government on the issue as Parliament sets to return from its summer hiatus next month. “I don’t think as much about whether we will get it back or not, but it’s the thing to do,” said Ste-Marie. “It’s a question of equity we know the big web giants do not pay their of taxes.” Ste-Marie, also the Bloc critic for industry and technology, described Carney’s decision to repeal the tax as “immoral,” and emphasized the petitioner’s request for an investigation into the amount of tax revenue that the Bloquiste said was needlessly sacrificed. “We have to keep up the pressure,” he said. “Information is key in these fights because, if we have information, then we can make arguments in the House, in the media, and in public debates.” “That’s what we need to change this.” In 2023, a study from the Parliamentary Budget Officer (PBO) estimated the DST would annually generate more than $1 billion, for a total of $7.2 billion during a five-year period spanning from 2023 to 2028. The PBO did not immediately respond to a request for updated figures. The Bloc have been vocal critics of the Liberal government’s handling of cultural and digital policies during recent trade discussions. Since negotiations broke down, Bloc Leader Yves-François Blanchet (Beloeil—Chambly, Que.) has asked Carney to reinstate the DST and hold firm on the Online Streaming Act, which could require U.S. streaming platforms to allocate a portion of revenues toward funding Canadian content. dlegree@thewirereport.ca

How much has Canada lost by repealing the Digital Services Tax? This Bloc MP wants to find out

Regulatory |
By Davis Legree
|August 27, 2026

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How much has Canada lost by repealing the Digital Services Tax? This Bloc MP wants to find out

Regulatory | By Davis Legree |August 27, 2026

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