Canada Set to Tax Online Gamblers
Online gambling has been lumped together with pornography in a so called 'sin-sites' category that will see these sites taxed to the highest degree by the Canadian government.
The Winnipeg Sun revealed that the government is set to introduce a concept called iTax that will see different categories of internet usage taxed - and online gambling, social networking and pornography will face the heaviest charges.
The newspaper quoted government spokesperson Earl White as saying: "The bills are piling up and we need to find new streams of revenue to keep up. This isn't really a tax. It's more of a user fee. Those who don't want to pay, can just live offline. The majority of Canadians do just fine without the internet."
Essentially, Internet Service Providers will need to monitor their users' internet activity and present a usage report to the authorities on a monthly basis.
The highest rate of taxation will apply the 'sin-sites', although the government has not yet determined the actual rate.
Naturally, the move has been met by the highest condemnation, and not only by gambling groups. The idea has been termed "information highway robbery" by the president of the Free Online from Our Parliament Association (FOOPA) which was formed to fight iTax.
The government defended its decision and said: "This is no different than paying that extra little fee when you go to an ATM machine. And no one complains about that, do they?"
There is also opposition within the government to the new tax, however it is understood that members of the government are afraid to speak out in case they are seen as supporters of pornography and online gambling.
