Google says it will pass on the cost of the Liberal government含羞草研究社檚 digital services tax to advertisers.

The company says it will implement a 2.5 per cent surcharge for ads displayed in Canada, starting in October.

含羞草研究社淒igital service taxes increase the cost of digital advertising,含羞草研究社� a Google spokesperson said in a statement. They said the 含羞草研究社渟urcharge is to cover part of the costs associated with complying含羞草研究社� with the tax.

The tax, approved in Parliament in June, will add a three per cent levy on foreign tech giants that generate revenue from Canadian users.

A trade group representing Canadian advertisers has warned other companies could follow Google含羞草研究社檚 lead.

含羞草研究社淭his will increase the cost of running ads on Google and will likely spur similar action on the part of other platforms if they decide to follow suit,含羞草研究社� the Interactive Advertising Bureau of Canada said on its website last week.

The digital services tax has drawn opposition from trade associations and business groups in the United States, where many of the tech giants are based.

The Computer and Communications Industry Association, which represents big tech companies including Amazon, Apple and Uber, previously called on U.S. President Joe Biden含羞草研究社檚 administration to take formal steps under the U.S.-Mexico-Canada Agreement.

The Information Technology Industry Council, whose membership includes Google, Meta, Apple and Amazon, also urged the Biden administration to 含羞草研究社渋mmediately address Canada含羞草研究社檚 measure that targets U.S. companies and attempts to ring-fence the digital economy.含羞草研究社�

It said in a statement last month the tax 含羞草研究社渟ends a damaging blow含羞草研究社� to Canada含羞草研究社檚 含羞草研究社減artnership with allies, the business community and Canadian consumers who will likely bear the burden of this tax.含羞草研究社�

The Office of the United States Trade Representative said in July it is open to using all available tools to halt the tax.

The Google spokesperson said Thursday the company would 含羞草研究社渃ontinue to pay all the taxes due in Canada and elsewhere, and we encourage governments globally to focus on international tax reform rather than implementing unilateral levies.含羞草研究社�

The Liberals first promised the tax in the 2019 election, when the Conservatives and NDP also pledged a similar measure.

The levy was then delayed for years due to global efforts to establish a broader, multinational taxation plan. But following significant delays to that process at the Organization for Economic Co-operation and Development, Canada went ahead with its own tax.

Other countries have brought in similar tools to tax the profits of large multinational companies in the digital sector.

A spokeswoman for Finance Minister Chrystia Freeland said Canada含羞草研究社檚 preference has always been a multilateral agreement.

含羞草研究社淐anada strongly supports international efforts to end the corporate tax race to the bottom and to ensure that all corporations, including the world含羞草研究社檚 largest corporations, pay their fair share,含羞草研究社� Katherine Cuplinskas said in a statement.

含羞草研究社淭he Canadian government has been clear for several years that it would move forward with its own digital services tax if a global agreement is not reached. Unfortunately, despite best efforts, repeated deadlines to reach an international agreement have come and gone.含羞草研究社�

含羞草研究社� With files from Kelly Geraldine Malone in Washington, D.C.

Anja Karadeglija, The Canadian Press