Fitness costs going up under HST

Fitness classes, personal trainers and gym memberships will cost Prince Edward Islanders more under the current plan to bring HST to the province next April.

Currently those services are exempt from the provincial sales tax, but that exemption will end. Instead of paying a five per cent GST, customers will be charged the new 14 per cent HST.

That doesn't make any sense to Steve Collette, who runs the fitness company Third Degree Training in Stratford.

"There's a lot of people that come here to better their lifestyle," said Collette.

"To charge a harmonized sales tax on that, in my opinion, it's kind of a contradiction of what our government's trying to do."

While the cost of participating in sports is going up, the cost of sitting and watching a sporting event will go down. Those tickets are not exempt from PST, and are currently charged a total of 15.5 per cent in sales taxes.

"The activity of watching a sport was always taxed before. It wasn't taxed to take part in an activity in the past, so when you look at the two it's just a victim of the circumstances," said Finance Minister Wes Sheridan.

Sheridan noted private fitness businesses will receive input tax credits when the HST takes effect. That could allow businesses to lower their base charge to customers, he said.

Non-profit sport organizations that currently don't charge tax won't be affected, but those organizations will pay more for gym and rink rentals. Gemma Koughan of Sports PEI she said that could mean an increase in registration fees.

"We want as many kids and adults involved in sports and physical activity as possible," said Koughan.

"Whether it's costs or travel or equipment whatever the case may be we want as few barriers as possible."

Collette is hoping the government will reconsider taxing those who want to get fit.