GST/HST
exemptions made permanent for Speech-Language Pathology services
John Manley, Deputy Prime Minister and Minister of Finance,
announced the proposed amendments to the Excise Tax Act and
regulations relating to the goods and services tax/harmonized
sales tax (GST/HST) on December 20, 2002. The amendment of particular
interest to us is the permanent addition of speech-language
pathology services to the list under the Act of GST/HST exempt
health care services.
The amendments of the draft legislation have the effect of
continuing indefinitely the current exemption for speech-language
pathology services to the Excise Tax Act. That section lists
health care practitioners' services that are exempt in all provinces
from the GST/HST even when supplied in a province that does
not cover the particular service under its own provincial health
care plan. Speech therapists (now known as speech-language pathology)
services were added to the list of exempt services in 2001 and
a subsequent announcement extended the exemption for the year
2002 during which the regulatory process was completed. The
exemption is therefore now being added on an indefinite basis.
In speaking with the Finance Department, although the Bill
has not been presented before Parliament, they indicated they
have every reason to believe the final legislation will be passed.
In fact, the payment treatment will be administered immediately
(as if the legislation has been passed).
Note: The GST/HST exemption already exists for audiological
services
