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Quebec says it will impose sales tax on Netflix

Quebec says it will impose sales tax on Netflix
WATCH: Last week, Canada signed an agreement with Netflix and will not make the company charge GST. But as Global’s Raquel Fletcher reports, the National Assembly is saying that won’t work in Quebec and it plans on imposing a provincial sales tax on the online streaming service.

Quebec says it will impose a provincial sales tax on Netflix, but first they want to have a discussion with the federal government.

Days after the federal government made public a new Canadian culture strategy, which includes its first ever agreement with Netflix, Quebec cabinet ministers say they’re in the dark.

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“I find it very odd that the federal government would exempt one company from a tax that all companies should collect,” Finance Minister Carlos Leitao said.

The agreement with the feds exempts Netflix from charging GST to its Canadian customers, but Quebec’s finance minister said he has every intention of demanding Netflix charge provincial tax to its Quebec subscribers.

WATCH: Could the Netflix deal be better for Canada

Could the Netflix deal be better for Canada?
Could the Netflix deal be better for Canada?

However, he first wants to see the full contents of the document Netflix signed with the federal government.

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“Once we have that, then we will be able to prepare a more effective strategy in our dealings with Netflix – and not just with Netflix, but with all of the businesses in this field,” Leitao said.

READ MORE: Netflix to invest $500M into producing Canadian content

The Parti Québécois (PQ) accused Quebec of hiding behind the federal government.

“This unfair competition is destroying jobs in Quebec,” PQ leader, Jean-François Lisée said Tuesday in Question Period.

Lisée said the province should pass legislation that requires all foreign online services to charge sales tax by January 1.