Ottawa Government Proposes to Make Counselling and Psychotherapy GST/HST Exempt

In a move that would align them with other healthcare providers like dentists, optometrists, and midwives, the federal government is planning to exempt counselling and psychotherapy services from the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) in their upcoming Fall Economic Statement (FES).

This decision comes as mental health services have gained increased recognition and importance in the wake of the COVID-19 pandemic and its associated public health measures.

The government acknowledges that mental health services can be expensive, with hourly appointments with counselors often exceeding $100 and costs rising further for specialized services such as those provided by psychologists. With this exemption, the government aims to make life more affordable for middle-class Canadians while also emphasizing the importance of mental healthcare.

The proposed exemption is estimated to cost $10 million annually and is slated to take effect in the 2024-25 fiscal year. As a tax measure, this change will require legislation and will only come into effect if it receives royal assent.