Bill C-323 aims to amend the Excise Tax Act to exempt psychotherapy and mental health counseling services from the Goods and Services Tax (GST). The bill highlights that a significant portion of Canadians report unmet mental health needs, and that publicly funded mental health services are not easily accessible. Many Canadians lack private insurance coverage for these services and must pay out of pocket.
The bill proposes changes to the definition of "practitioner" in the Excise Tax Act to include psychotherapy and mental health counseling. It also amends Section 7 of Part II of Schedule V to the Act to specifically include psychotherapy services and mental health counseling services as exempt from GST.
The bill will come into force six months after it receives royal assent. This delay likely allows time for the Canada Revenue Agency to implement the necessary changes to its systems and for healthcare providers to adjust to the new regulations.
Inflation and Cost of Living
This bill seeks to reduce the cost of mental health services by exempting psychotherapy and mental health counseling from the Goods and Services Tax (GST). By removing the GST, the bill aims to make these services more affordable and accessible to Canadians who need them.
Taxation
The bill amends the Excise Tax Act to exempt psychotherapy and mental health counseling services from the Goods and Services Tax (GST). This means that the federal government will no longer collect GST on these services, which could slightly reduce federal tax revenue.