Music Streamers Want 'Discriminatory’ Canadian Tax Ended

Canada should reverse its “discriminatory” 5% tax on U.S. music streaming platforms, the Digital Media Association told the Canadian House International Trade Committee Thursday (see 2406040031). The new tax could result in increased costs for consumers and undermine investments in the Canadian music industry, CEO Graham Davies said in written testimony. DiMA membership includes Amazon Music, Apple Music, Pandora, Spotify and YouTube. He noted U.S. Treasury Secretary Janet Yellen and David Cohen, the U.S. ambassador to Canada, have “expressed strong opposition to any discriminatory taxes against U.S. firms.” Music streaming services distribute about 70% of money from consumers to music labels, music publishers and collective rights management organizations, while commercial Canadian radio stations likely pay less than 9% to music rightsholders, he said. DiMA wants to “continue supporting, and investing in Canadian music and culture,” Davies said. “We are concerned that implementation of this legislation jeopardizes the ability to meaningfully do so.”