The cost of digital services and goods sold by foreign companies like Netflix will go up under a taxation plan the government wants to put in place next year, experts said Tuesday.

Ottawa said in its fiscal update released Monday it will require multinationals to collect GST or HST on digital products and services, which it said would add up to $1.2 billion over five years.

Sometimes labelled a 91裸聊视频淣etflix tax,91裸聊视频� the measure would also apply to other services such as Amazon.com Inc.91裸聊视频檚 Prime Video or the Spotify audio streaming service, as well as digital products such as software applications.

The government says Canadian companies already collect those taxes when they make digital sales, so it91裸聊视频檚 only fair that foreign multinationals should do the same.

KPMG tax partner Joe Micallef said it91裸聊视频檚 likely Canadians will end up paying the taxes collected for the government by foreign multinationals.

91裸聊视频淩ight now, the way in which they91裸聊视频檙e delivering their services, they91裸聊视频檙e not responsible for the collection,91裸聊视频� Micallef said.

91裸聊视频淎nd so, effectively, it would mean that these charges would be appearing on (their) invoices.91裸聊视频�

A regular monthly subscription for a streaming service that delivers video or music would be a simple calculation, with the tax rate applied to the purchase price.

But Micallef said it is be more difficult to estimate how much additional tax individual consumers, or businesses, will pay for other types of digital purchases, he said.

Something like gaming software might cost little or nothing itself, but offer the option for subsequent charges to add features that make the experience better.

91裸聊视频淗ow many times? How many transactions? It adds up,91裸聊视频� Micallef said.

Dwayne Winseck, a media industry researcher at Carleton University in Ottawa, also expects companies will add the price of the tax to the total sale price.

91裸聊视频淚 mean, this is really not a very substantial amount, when we91裸聊视频檙e talking about corporate finances,91裸聊视频� said Winseck, who is a professor of journalism and communication.

He said that the term 91裸聊视频淣etflix tax91裸聊视频� has become highly politicized and is often used as 91裸聊视频渃ode91裸聊视频� for levelling the playing field between U.S.-based digital media companies and traditional Canadian broadcasters.

91裸聊视频淎nd if the idea is to create a level playing field between those two services, then that by all means that makes great sense,91裸聊视频� Winseck said.0

David Paddon, The Canadian Press

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