GST and HST removed on counselling therapy and psychotherapy services

The Canadian government amended Bill C-59 An Act to Implement Certain Provisions to the Fall Economic Statement in June to remove the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) on counselling therapy and psychotherapy services.

Services covered by provincial public health care plans are not subject to GST or HST. This tax exemption includes most services provided by physicians, dentists, nurses and certain health care professionals such as optometrists and midwives. However, it did not include psychotherapists and counselling therapists.

The 2023 Fall Economic Statement had proposed adding psychotherapists and counselling therapists to the list of health care practitioners whose services are exempt from GST and HST. This change aimed to make mental health services more affordable and accessible for individuals. The proposal received royal assent from the enacting legislation on June 21.

The amendment comes after extensive advocacy from the Canadian Counselling and Psychotherapy Association (CCPA). In a press release, President of the CCPA Carrie Foster said “This bill will transform the mental health care landscape in Canada by removing financial barriers that prevent many individuals from providing and accessing vital therapy services.”

The AMS/GSS Health and Dental Plan’s mental health coverage for UBC students has decreased in previous years from $1,500 per year to $1,250 per year to maintain the AMS’s financial sustainability.

It was announced that the coverage would be reduced from 100 per cent to 80 per cent before the AMS managed to secure a one-time $500,000 funding from UBC bringing the coverage back to 100 per cent.

The AMS did not respond to The Ubyssey's request for comment by press time.

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