05:43 AM EDT, 06/30/2025 (MT Newswires) -- Canada said Sunday it has decided to rescind the digital services tax ahead of a comprehensive trade arrangement with the US during negotiations scheduled to end by July 21.

The 2020 tax was meant to tax revenue generated by e-commerce companies serving Canadian consumers, the Canadian government's statement said.

Canada Minister of Finance and National Revenue Francois-Philippe Champagne said it will soon propose legislation to rescind the Digital Services Tax Act.

"Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the US States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians," Prime Minister Mark Carney said.