Two years into a consequential — and occasionally controversial — program of government support for the Canadian news industry, we have a window into how one provision is working.
Back in 2019, citing the importance of journalism for a healthy democracy, Canada announced a 5-year, $600 million initiative to support the country’s news industry. Some key provisions mirror what’s been proposed in the U.S., including a tax credit on wages and a tax credit to encourage subscriptions. (A related Canadian program that gives grants to news organizations to hire local journalists for underserved communities, known as the Local Journalism Initiative, accounts for a fraction of overall spending at $50 million over five years.)
Under the new tax provisions, Canadians can get reimbursed for 15% of what they spend on digital news subscriptions from outlets designated as “qualified,” up to $500.
According to information provided by the Canada Revenue Agency, about 302,000 Canadians filed for the tax credit in 2020. The average tax credit was $36, meaning those who claimed the credit spent an average of $240 on digital subscriptions over the year.
With more than 27 million tax filers in Canada, that’s an uptake around 1%.
Recent Comments