Community, Commentary and Curriculum
for Massage Therapists

Additional Tax on Massage Therapy
Concerns Me

- post: May 8th, 2010 -

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We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle
- Winston Churchill

The Harmonized Sales Tax (HST) takes effect July 1 in Ontario and British Columbia, adding 8% additional tax onto many services previously set at 5%, including massage therapy.  Despite assurances by government (that should worry you right there) I do not feel confident this is a good time to impose added financial burden on the working class. 

With businesses affected by the recession and extended health plans under regular pressure, discretionary income declining due to inflation and rising costs of living…I have concerns.  I expect it will cost our family $150 – 200 more/month in expenses to now pay 13% on top of services we were paying only 5% GST before.  For some that may be just too much.

As you may have read in my prior posts, historically massage therapy has flourished partly due to generous extended health plans and higher salaries for skilled workers.  Yet we now see a reversal in that prosperous trend and all salaries – even physician, nurse and pharmacist – are due for the chopping block.

Massage therapists are especially vulnerable because - although considered health care providers in many provinces and states - still do not access primary Medicare funding.  Further, there is increasing competition from other health providers (PT/OT assistants, kinesiologists and athletic therapists, possibly nursing assistants and personal support workers), hydro/electric home massage applications, immigrant workers who will accept lower wages, downward pressure from spas and massage franchises, limited coverage from auto insurance and workers compensation claims.  Never mind economic downturns and pandemics. 

There are real inequities in health care when taxation is involved.  Imagine you work with a chiropractor and physiotherapist where it’s already perceived your fees are higher (because of longer time blocks) and what’s more, there’s 13% tacked on in taxes not required for physio or chiro interventions.  Citizens will have less discretionary income because they’re paying that extra 8% not just on your services, but on many other goods and services now.  Quite the squeeze. 

The Ontario Massage Therapist Association http://www.omta.com has actively resisted the HST and has put great efforts forward towards exemption.  However without 5 regulated provinces (we have 3) or two covered under provincial medicare, our pleas fall on deaf government ears.  The OMTA is supporting efforts by other provinces to become regulated and position us for exemption, but in the meantime has a number of recommendations for its members posted in OMTA publication Massage Therapy Today, May 2010.  May sure you get your hands on a copy.

My service fee for an hour treatment will contain $10.35 in tax!  I’m wondering what strategy I will employ.  Some of my patients won’t care about the raise in fee as they have financial means and they accept the added cost.  For others, it will be a consideration, especially since it cuts more into their health care benefits.  Even the spa industry is not immune.  For the first time in many years they’ve seen some decline in spa visits, or a reduction in the number of services purchased by spa-goers.[1] 

The HST is one of many threats I’ve mentioned to the sustainability of the massage therapy profession.  I believe its time we question and examine old conventions and put our collective creative and innovative thinking caps on.  I’ve got some ideas on short, multi-practitioner acute care models that may serve some in my practice base more effectively. 

I’m wondering, if you’re facing the HST, what you plan to do.  Write me at comment@mtcoach.com and I’ll post your ideas to the MT world.

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