No to Internet Tax !
Apparently Canadian Heritage Minister Mélanie Joly is considering an Internet Tax to fund Canadian content, according to University of Ottawa professor Micheal Geist. And unfortunately for Canadians this tax may make internet access more expensive.
There are currently two taxes being considered ; One on content providers like Netflix and iTunes and another general sales tax on internet access. And although the previous tax may sound better than the latter, one has to wonder if all music, television programs and films purchased or rented online would be subjected to this tax, including those that are made available through the internet television providers.
SiriusXM subscribers are already subject to taxes and a “Music Royalty and Regulatory Fee of 14.2%”. But would the service also be subjected to this additional tax ? Will Apple Music subscribers need to pay for this additional tax ?
We currently pay nothing to listen to radio and to watch television offline. We also already pay taxes on compact disc, DVD and blu-ray purchases, which would not be subject to this new tax. It therefore makes no sense to charge people more taxes for the same content, especially when it involves the streaming of purchases matched or uploaded to a Cloud service.
Why does the government not fund Canadian Content by taxing Canadian broadcasters that run adverts online, when they stream foreign content ?
I’m sure Rogers and Bell would likely oppose this because they’d likely rather see the foreign services taxed instead. But the foreign services have no legal obligation to collect these taxes and the Trans-Pacific Partnership Agreement would disallow this requirement, if passed.
We also currently pay taxes on our internet provider subscription fees so any additional tax would simply make it unaffordable for many Canadians.
Canadians spent on average $203 per month on communication services in 2014, according to a CRTC Report released in 2015, an increase of approximately 6% from 2013 ($11.92). And according to CBC News, there was a 10% increase on wireless and internet services specifically from 2013.
To dissuade use of foreign services like Netflix and iTunes, Canadians are also already subject to data caps and the proposed tax would simply make the unlimited internet plans less affordable.
Many Canadians also still pay a “Digital Services Fee” on their cable, satellite and television subscriptions, a fee that cannot be justified now that an analog service has been fazed out.
Could the government not demand this fee be replaced with a Canadian Content Improvement Fund fee instead ? Or will this obsolete fee be buried like that of Bell’s $2.80 Touch-Tone fee, which netted Bell $80 Million in 2013 according to CBC News ?
At the moment Bell is claiming the Digital Service Fee is collected to improve their services. But isn’t that what their investors are paying for ? Why their customers are being asked to pay more per month for television ?
Prior to September 2014, cable and satellite television subscribers in Canada paid a monthly 1.5% fee to the Local Programming Improvement Fund, which netted $106 million in 2011 for television stations in markets smaller than a million. And although this fee was discontinued, these subscribers barely noticed because they were asked to pay more for their television subscriptions shortly after.
The average monthly rate for television services paid by Canadians climbed from $65.25 in 2014 to $66.08 in 2015, according to CBC News ; A difference of 83 cents per month when the average monthly rate for Canadians for the Local Programming Improvement Fund was 50 cents. And with the mandated “skinny package” changes some have seen their monthly rates rise significantly since the spring of 2016.
I believe it makes more sense to apply a Canadian Content fee of a dollar or two to the sale of television antennas, digital converter boxes, digital television receivers/set top boxes, satellite/internet radio receivers and streaming media players in Canada, although some members of the public would likely not enjoy the prospect of paying it in addition to a Provincial environmental handling fee and having both fees taxed.
Perhaps a monthly fee of 1.5% on unlimited internet packages or bundled packages over $150/month would be the path of least resistance because it would likely be negligible to the subscribers of these specific bundles or packages.
The CRTC Wants Your Comments On Your Internet
Whether you think it’s too slow, spotty or expensive, the CRTC wants know.
Rolling Up The Sleeves
So, the election results are in and now it’s time to start asking questions.
What parts of Bill C-51 will remain unaltered and what changes are to be expected under the new government ? Will Canadians be burdened with extra costs to implement these surveillance programs ? What measures will be taken to keep the data secure ?
Does the Trans-Pacific Partnership Agreement include further intrusions into our copyright ? Will the public be consulted in regards to the key provisions of this agreement prior to signing ? Will our recent reforms be bypassed and superseded by foreign entities and lobbyists ?
We will of course all need to wait until the next budget to know what investments the new government is planning for our digital strategy. But we should know who will be assigned to the key cabinet positions shortly.
Security Flaw Found In IE
Microsoft is currently working on fixing a bug that has been found in versions 6 to 11 of Internet Explorer and the United States Computer Emergency Readiness Team has issued a press release asking individuals to use alternative browsers until the bug is fixed :
Click here to download Firefox
This bug is exploited by malicious web sites so IE users can continue to use their browsers by avoiding potentially dangerous sites. XP Users should use alternative browsers.
No Royalties On Music Previews
The Supreme Court Of Canada has ruled that music previews comply to the definition of Fair Dealing in the Copyright Act and cannot therefore be subjected to the collection of royalties.
“Research” need not be for creative purposes only. Permitting only creative purposes to qualify as “research” would ignore the fact that one of the objectives of the Copyright Act is the dissemination of the works themselves. Limiting “research” to creative purposes would also run counter to the ordinary meaning of “research”, which includes many activities that do not require the establishment of new facts or conclusions. The fair dealing exception must not be interpreted restrictively and “research” must be given a large and liberal interpretation.
The Society of Composers, Authors and Music Publishers of Canada, Canadian Recording Industry Association and CMRRA-SODRAC Inc had wished to collect royalties from internet providers for both previews and full music downloads, the latter also having been dismissed by another ruling by the Supreme Court of Canada today.
These royalties would have resulted in major expenditures for internet providers, who would have passed these on to the consumer.