Exempt RMT services from GST/HST
Petitioners ask to amend the Excise Tax Act to exempt services by provincially/territorially registered RMTs from GST/HST. The government responds that exemption criteria apply and a formal request is under review.
Why we would sign this petition
- Reduces financial barriers: exempting RMT services would lower out‑of‑pocket costs, improving access for people with chronic conditions, disabilities, low incomes or limited insurance.
- Remedies tax inequity: aligns GST/HST treatment of massage therapy with other regulated health professions that are already exempt.
- Encourages early care: lower costs could promote earlier therapeutic intervention, potentially reducing long‑term health system costs.
Why we wouldn’t sign this petition
- Revenue and fairness trade‑off: broadening exemptions shrinks the tax base, possibly requiring higher rates or cuts elsewhere to maintain revenue neutrality.
- Policy and jurisdictional complexity: exemption decisions depend on provincial coverage and regulation, so federal exemption may need provincial alignment and vary in application.
- Administrative effects for providers: tax‑exempt suppliers cannot claim input tax credits, which may affect service delivery, pricing or provider viability.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
PETITION TO THE GOVERNMENT OF CANADA WHEREAS: Registered Massage Therapists (RMTs) are regulated health professionals in several Canadian provinces and territories, practising under provincially legislated health-profession acts and providing evidence-based therapeutic care; Massage therapy is widely recognized as a medically necessary service by health-care providers, including physicians and specialists, who frequently recommend it for the treatment and management of conditions such as chronic pain, soft-tissue injuries, post-surgical rehabilitation, stress-related conditions, and mobility impairments; Comparable regulated health services such as chiropractic care, physiotherapy, occupational therapy, and other regulated modalities are zero-rated or exempt from the federal Goods and Services Tax (GST)/Harmonized Sales Tax (HST); The continued application of the GST/HST to RMT services creates an unfair tax inequity among regulated health professions despite similar educational requirements, professional standards, and contributions to public health; The tax burden increases the financial barriers to essential therapeutic care, particularly for Canadians with chronic conditions, disabilities, low incomes, or limited health insurance coverage; Removing GST/HST from massage therapy services would improve affordability, promote early intervention, reduce long-term health-care costs, and align federal policy with modern clinical and regulatory realities. WE, THE UNDERSIGNED THE CITIZENS OF CANADA, CALL UPON THE GOVERNMENT OF CANADA TO: To amend the Excise Tax Act to designate massage therapy services provided by a provincially or territorially Registered Massage Therapist (RMT) as GST/HST-exempt, consistent with other regulated health-care services; and Ensure that all Canadians can access clinically appropriate massage therapy without the added financial burden of federal sales tax.
Government response
Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne The Goods and Services Tax/Harmonized Sales Tax (GST/HST) applies to a broad base of goods and services with only limited exceptions, which include basic groceries, residential rents, certain medical devices, prescription drugs and basic health care services. Applying the GST/HST to a broad base of goods and services makes the tax system more efficient and simpler, and helps keep the tax rate lower. The policy underlying the GST/HST treatment of the health care sector is that basic health care services are tax-exempt. In determining what constitutes a basic health care service, the approach that the Government of Canada has taken is to refer to the provinces and territories, given their major role in delivering health care. In this regard, if a service is covered by the public health insurance program in a given province or territory, the GST/HST legislation exempts the service in that province or territory. In addition, certain criteria have been developed for deciding whether services of recognized health practitioners should be tax-exempt in all provinces and territories. Under these criteria: if a service is covered by the public health insurance program of two or more provinces or territories, it may be exempted in all provinces and territories; and if a profession is regulated as a health profession by at least five provinces or territories, the services of that profession may be exempted in all provinces and territories. Health care services are not automatically added to the list of exempt health care services. A formal request to exempt the service must first be made to the Minister of Finance by the health profession providing the service. The Department of Finance Canada will then review the request to see whether the health profession meets the exemption criteria. If the exemption criteria are met, the Department will then consult with the relevant provincial and territorial associations of the profession to ensure that there is widespread support for the GST/HST exemption. Suppliers of tax-exempt services do not charge GST/HST, but are not eligible to claim input tax credits to recover the GST/HST paid on their inputs. It is understood that massage therapy is now regulated in five provinces. A formal request to exempt these services has been received and is being reviewed by the Department. The government is continually reviewing the tax system to ensure it is both effective and efficient and will continue to do so.