(Ottawa) Google says it will pass the cost of the federal digital services tax on to its advertisers.
The company announced Thursday that it will charge businesses a 2.5% surcharge for their ads displayed in Canada, starting in October.
A Google spokesperson said the fee will be intended to cover part of the cost of the tax, which levies a 3% charge on the revenue of foreign tech giants that generate profits from Canadian users.
The proposal, which was passed by parliament in June, has drawn opposition from industry associations and business groups in the United States, where many tech giants are based.
The Office of the U.S. Trade Representative said earlier this month that it was prepared to use all available tools to end the tax.