Prior to January 1, 2019, iTunes only charged sales tax on the purchase of apps but as you have discovered, sales tax is now also charged on TV, music, movie and audiobook purchases. As online digital sales are rapidly overtaking the sale of their physical equivalent, it should not be surprising that the government would tax those items to make up for losses in the physical domain, but Apple did not publicly announce that they were doing this. So that’s Apple’s bad. While I understand the government’s rational for this, my concern is about the possibility of being taxed twice for the same product if I choose to own it in both its digital and physical formats.
I think the Internet tax you mention is a proposal by Canadian musicians and the Screen Composers Guild of Canada for a broadband copyright tax. The idea is an extension of the Private Copying Tariff that is a tariff on recordable media, such as blank CDs, DVDs, audio cassettes, etc. Instead of making the copying of recorded copyright material for personal use illegal, the tariff was introduced to ensure that rights holders be compensated. About two-thirds of the levy’s revenue goes to the Society of Composers, Authors and Music Publishers of Canada and other organizations that distribute the funds based on commercial radio airplay and commercial sales samples . During the Napster days and since there has been pressure to extend the tariff to the memory portion of digital audio players but the courts have prevented this.
There has been a lot of opposition the to the broadband copyright tax and I highly doubt it will ever be implemented for a variety of obvious reasons that perhaps deserves a thread of its own if anybody is interested. Remarkably, the Private Copying Tariff still exists even though the blank recordable media the tax is applied to are almost obsolete.
Regarding Netflix, it is only in the province of Quebec, where I live, that sales tax is being charged for their service. This is the result of heavy lobbying by broadcasters and local creators of content who felt it unfair that their products be taxed while Netflix services remains exempt. Being a small island of French language speakers in a vast ocean of Anglophones, there is very strong sentiment in this province that Quebecois creative industries be protected. And yes, with the increase in Netflix fees, in Quebec it does sting.