Adult fitness tax break could cost $286M over five years: budget watchdog


OTTAWA – The parliamentary budget officer says an adult fitness tax break would cost the government between $15 million and $47 million a year in foregone revenue.

A report from budget office Jean-Denis Frechette says the fitness tax credit could cost a maximum of $268 million over five years

The tax break proposed by the Conservatives in the last federal election would offer a credit of up to $75 for eligible fitness programs.

Frechette’s report says his cost estimate doesn’t include any incremental costs related to administering the programs.

The budget office was asked to assess the impact of the credit by an unidentified MP.

The report says the credit would allow eligible taxpayers to claim a non-refundable tax credit of up to $500 for eligible physical activity program costs against their taxable income at a rate of 15 per cent, or a maximum of $75 deducted from tax payable.


Adult fitness tax break could cost $286M over five years: budget watchdog

  1. I would be very interested to see the correlation between those using this tax break and income levels, and also if there is any data showing that more people are actually more physically active since the tax break was implemented.
    I suspect that it had no impact on the level of physical activity, something like the long form census might have been able to answer that question.

    • Yep, Coyne is probably pulling his hair out right now. Tax subsidies for those who most likely are already going to the gym and can already afford it. IOWs bribing the upper M/C with its own money.

  2. This isn’t really a tax break, it’s a subsidy for a very specific group of companies that offer workout space. If you get a gym membership, Bob’s your uncle. If you are involved in other physical activities which don’t require memberships or fees (such as distance running, cycling, etc), you don’t get this break on necessary equipment for your exercise regime. Ergo, this is a subsidy applied directly to the Curves, Goodlifes, and other similar companies and organizations, albeit funneled through individual members.

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