PM nixes idea of broadband Internet service tax

Prime Minister Justin Trudeau has put a stop to the idea of imposing a five per cent tax on broadband Internet services as a way of "levelling the playing field" in Canada's rapidly evolving news industry.

Liberal members of the Commons heritage committee released a long-awaited report Thursday with 20 proposals aimed at helping the slumping media industry adapt to rapid technological change and shifting consumer habits.

The majority report calls on Ottawa to apply the tax, levied on broadband Internet providers, to high-speed Internet services that allow for the streaming of music, movies and TV shows.

Trudeau spiked the proposal, saying his government won't raise taxes on the middle class.

Conservative MP Peter Van Loan tabled a dissenting report, saying higher taxes and government control of the news are not the answer to the problem.