Canada’s budget to include digital and luxury levies, but no wealth tax: Reuters sources

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Canada’s first budget in two years, to be presented to parliament on Monday, proposes a sales tax for online platforms and e-commerce warehouses, a digital services tax for Web giants and a luxury tax on items like yachts, government sources familiar with the document said. It will not include a wealth tax, a levy sought by the opposition New Democrats. Liberal Prime Minister Justin Trudeau’s budget will need the support of at least one opposition group to pass. “The government is not moving forward with a wealth tax right now,” a government source told Reuters. “We will be taking meaningful steps to close loopholes and tackle tax evasion, and ask those who are doing well right now to pay just a little bit more.” The budget will include a sales tax for online platforms and e-commerce warehouses starting from July, and a digital services tax on big Web companies starting from Jan. 1, 2022, both measures originally promised last year. Online platforms include foreign-based vendors with no physical presence in Canada that sell products such as mobile apps and online video gaming. E-commerce warehousing is the storage of physical goods before they are sold online.

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