Archived - Government of Canada Exempts Acupuncturists’ and Naturopathic Doctors’ Professional Services from GST/HST
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March 28, 2014 – Markham, Ontario – Department of Finance
The Honourable Jason Kenney, Minister of Employment and Social Development and Minister for Multiculturalism, on behalf of the Honourable Joe Oliver, Minister of Finance, today highlighted the Harper Government’s support for families through new health-related tax relief.
Economic Action Plan 2014 proposes a number of measures to reduce the tax burden on Canadians, including health-related tax relief such as an exemption from the Goods and Services Tax/Harmonized Sales Tax (GST/HST) on acupuncturists’ and naturopathic doctors’ professional services. Changes to the tax treatment of these services and other GST/HST health-related measures announced in Economic Action Plan 2014 became effective on February 12, 2014.
This tax relief builds on the Harper Government’s record of keeping taxes low for Canadians and their families.
Economic Action Plan 2014 proposes measures that will expand health-related tax relief by:
- Exempting acupuncturists’ and naturopathic doctors’ professional services from the GST/HST.
- Expanding the list of eligible expenses under the Medical Expense Tax Credit to include costs associated with service animals specially trained to assist individuals with severe diabetes, such as diabetes alert dogs.
- Providing further tax recognition for costs associated with eligible specially designed medical therapies and training by:
- Expanding the current GST/HST exemption for training that is specially designed to help individuals cope with a disorder or disability to also exempt services of designing such training, such as developing a training plan.
- Including amounts paid for the design of an individualized therapy plan as an eligible expense for income tax purposes under the Medical Expense Tax Credit.
- Adding eyewear specially designed to electronically enhance the vision of individuals with vision impairment that is supplied on the order of a physician or other specified health professional to the list of GST/HST-free (zero-rated) medical and assistive devices.
“Traditional Chinese Medicine has been practised for over 3,000 years. Today, millions of Canadians are using acupuncture and other Traditional Chinese Medicine services to improve their health, which eventually reduces the burden on the Canadian health care system. Our Government recognizes and respects this and, as a result, I am pleased to highlight today that, thanks to Economic Action Plan 2014, acupuncturists’ and naturopathic doctors’ professional services are now exempt from the GST/HST. This tax relief is only a part of a much larger effort of our Government to lower taxes for hardworking Canadians and their families since 2006. As a result of our Government’s strong record of tax relief, an average family of four will pay about $3,400 less in taxes in 2014.”
- Jason Kenney, Minister of Employment and Social Development and Minister for Multiculturalism
“I am proud to be part of a government that recognizes acupuncture as an important health service that should be recognized with a GST/HST exemption. This should lower costs for Canadians seeking these services.”
- Chungsen Leung, Parliamentary Secretary for Multiculturalism and MP for Willowdale (Ontario)
“We welcome the new measure to add acupuncture services to the list of important health services that are exempt from the GST/HST. This will help alleviate the burden for patients seeking acupuncture treatment. As the Task Chair of the Canadian Coalition of Traditional Chinese Medicine and Acupuncture Associations, I thank the federal government for recognizing this.”
- John Lee, Task Chair, Canadian Coalition of Traditional Chinese Medicine and Acupuncture Associations
Director of Communications
Office of the Minister of Finance
Department of Finance