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actually paid. So if 13% HST is paid, the purchaser is entitled to an input tax credit for that same amount. -

ager of the Indirect Tax Group at  comment on the HST (see Feb. 1, 2007, in FitNet archives at www.fitnet.ca for his full article): “If some purchases remain at the same

tax rate, while others face a higher tax rate, how could this possibly be revenue neutral? Would this be a tax grab? Not - rently pay billions of dollars in RST (re- - chases such as building materials, office equipment, repair services, etc. This tax is not recoverable at present. Under an HST, most businesses in Ontario would be able to recover the provincial portion of the HST.”

THE BAD

Club members seeking renewals, pro-

spective members and those purchas- ing personal training and other facil- ity services will not be happy. They face an increase in fees and prices due to the increasing taxes. This is- sue has been fought successfully by The International Health Racquet & Sportsclub Association in many U.S. states where fitness facilities have been exempted from state taxes. 

 fought by a loose consortium of fitness operators in 1996. It was unsuccessful. In Ontario, the HST is being chal-

lenged by Fitness Industry Canada un-   Gilbank (866-402-3422, bgilbank@ ficdn.ca) as well as through a formida-   has met with the Ontario finance min- ister to express serious concerns about the effect of the HST on fitness member- ships and services. -

ments are widely praising the effort  will cut the costs of businesses by cut- ting back on administrative filing costs by an estimated $190 Million. FIC is ex- tremely concerned that the increased tax burden on memberships will slow mem- bership sales and increase membership attrition in an already stressed economy.

In addition, due to the new costs associ- ated with obtaining a fitness member- ship, access and the health of Ontario’s - als may forgo membership due to the in- creased cost. Tory opposition members - ting people with tax hikes when they can least afford it.” FIC is currently working on a strategy

to reverse this position, working close- ly with the government relations firm Sussex-Strategy Group to lobby both the provincial and federal government to re- move the tax on fitness memberships. "This is a tax on the health and fit-

ness of Canadians at a time when we can ill afford the health implications of  Evans. "What this tax means is that ser- vices such as memberships, personal training and massage will be taxed. I met with the finance minister of Ontario and had a discussion about possible al- ternatives. He has promised to look into the situation at the same time without making any commitments. The foot is now in the door. To tax health and fit- ness clubs is extremely short-sighted when there should be an unprecedent- ed focus on prevention. The total di- rect costs of obesity as reported by the Canadian Medical Association in 1997 are estimated to be over $1.8 billion or 2.4% of total health care expenses in Canada. “

THE UGLY

 The most unfortunate aspect of this

tax for club operators is that members and prospective members will see it as com- ing from the club operator not the gov- ernment. This will make it harder to sell memberships and other services, par- ticularly when all are suffering from the worst economic meltdown since the Great  This is why Fitness Industry Canada

 doing their best to challenge the tax as it applies to fitness operators. They deserve your support. Fitness pro-

  being exerted on behalf of the entire fit- ness industry.

Don Longwell is the former editor of

Fitness Business Canada.

s iWhat thendustry isaying

Steve Colivas Co-founder of Extreme Fitness clubs Toronto

“You are about to become the victim of the largest tax hike in our history! How will this affect you? Let’s start with a few things that would be charged the extra 8%: gasoline, home heating fuel, water, hydro, used cars, government and city services and real estate fees. Our premier is counting on taxpayers to do

what they always do when a new tax is added – nothing! It’s very important that you start to research and discuss this with your friends and family. It’s not too late to stop this if you’re willing to send an email asking the premier to either (a) stop the tax grab all together or (b) do what they originally intended which was blend the tax on the products that now have both taxes and not extend the new tax to eve- rything else If we start telling everyone about this injus-

tice we can stop this tax today. Don’t think your email will not count. When most MPs get more than 10 emails, they consider it a catastrophe! If you do nothing, you lose your right to

complain. Your government will assume you support the increased taxes. Send an email.”

Andy Childs Phoenix Fitness

Hamilton, Ont.

“It’s going to be a pain in the ass, and I’m not looking forward to listening to my members bitch and moan! However, the reality is that all of the competition is equally affected, so we aren’t going to be at any kind of disadvantage.”

Geoff Del Grande Fitcom Services

Orangeville, Ont.

“I can only hope that Ontario follows suit with Nova Scotia and offers up a tax credit for join- ing a fitness club to people of all ages.

Make Your Voice Heard

Email your objections to the HST to Premier McGuinty at www.premier.gov.on.ca/feed- back/feedback.asp.

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