Adding PST to gym memberships a 'slap in the face', says president of fitness franchise

Entertainment and working out at a gym will soon cost a little more for people in the province.

The Saskatchewan government is expanding the provincial sales tax (PST) base starting October, according to the 2022-23 budget.

This means people will have to pay an extra six per cent on admission and entertainment charges, including gym, golf and curling memberships.

"This is just a slap in the face," said Blake MacDonald, president of Orangetheory Fitness Canada.

"We should be part of the solution here, not lumped in with smoking and going to a football game."

In addition to announcing the PST on admissions and entertainment, the Saskatchewan government will also increase the tobacco tax by two cents per cigarette.

The fitness industry has already been hit hard during the pandemic due to restrictions, said MacDonald.

His company is barely back to 60 per cent of their pre-COVID revenue, he said. He thinks that instead of taxing the industry, the government should look into a fitness tax deduction.

"We're just a little baffled by the whole thing," he said.

"We are not out of the pandemic yet. The government needs to be thinking about how do we incentivize people to look after themselves better and reduce future health-care costs."

MacDonald referred to a 2021 report from the Agrifoods Analytics Lab at Dalhousie University which found that 42.3 per cent of Canadians said they had gained weight unintentionally during the pandemic. 

The additional six per cent PST will make a difference for clients at Orangetheory Fitness studios, he said.

MacDonald is particularly concerned about the signal this move by the province sends to consumers, he said, especially now when some are still leery about getting out and coming to places like gyms.

"People are scratching their heads," he said.