Canada's Prime Minister Stephen Harper greets the Jewish community
Canada's Prime Minister Stephen Harper greets the Jewish community as he arrives to participate in a candle lighting ceremony to mark the start of Hanukkah in Montreal, Quebec, December 16, 2014. Reuters/Stringer

In the ongoing campaign for federal elections in Canada, the stand of top leaders on the matter of taxing streaming movies has become a poll issue. This is because the ruling Conservatives has made it a poll issue by starting an e-mail campaign backed by videos that are exhorting “Vote Harper to stop a 'Netflix Tax' #noNetflixtax"

The appeal urges voters to re-elect a Conservative government if they want to spare a tax imposed on Netflix, which is a service offering movies and TV episodes. “Netflix tax” will charge a sales tax on the service’s subscription fees.

Harper’s video

In the campaign video released by the ruling party to social media, the Prime Minister Stephen Harper is seen standing in front of a Netflix logo and speaking about his love for movies particularly “Breaking Bad” as the favourite. Mr Harper recounts how opposed he is for a tax on streaming of movies. “I’m 100 percent against the Netflix tax, always will be.” Mr Harper said in the video, accusing his rivals of supporting the tax.

Harper himself justified the campaign and said, “some politicians want to tax digital streaming services like Netflix and YouTube. Some called on us to introduce a Netflix tax. Justin Trudeau and Thomas Mulcair left the door wide opened to doing just that. The choice is clear. Only our party can be trusted not to bring forward a new Netflix tax.” However, Canada’s Liberal party disowned Netflix tax and said “we do not support a Netflix tax.” The New Democratic Party, which has an edge in the polls, also said they are not supporting the tax.

Ironically, it was the Harper government that raised the idea in the February 2014 budget for a Netflix tax and sought inputs from stakeholders to create a level playing field for online vendors who had been complaining about foreign giants such as Amazon, Apple and Netflix enjoying an unfair advantage in selling digital products.

Laughable

NDP leader Tom Mulcair laughed away the matter when asked by a reporter in Toronto, whether his party would bring in a tax on Netflix. “I remember back in 2011,” Mulcair said , “the Conservatives said they would not tax income trusts and they went ahead and taxed income trusts. They said they would never bring in an iPod tax... and they brought in an iPod tax. I think Canadians have every reason to be worried based on Mr. Harper's past behaviour as every time he promises not to tax something that's actually a clue that he is going to tax.”

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