Gym owner pleased with parts of provincial PST plan

The owner of Focus Fitness in Saskatoon was just putting the finishing touches on some new messaging to his clients and staff Tuesday, letting them know the provincial sales tax (PST) would soon be added to their membership fees.

That work became unnecessary Tuesday morning when Garret Blackwell learned about the province’s plan not to include fitness and gym memberships and some other recreational activities in the planned PST expansion taking effect in October.

“Messaging to the members would have been the biggest thing, because you don’t want to be increasing their rates and then all of sudden they have no idea why these extra charges are on their memberships. I was putting the final touches on getting our website changed and getting our staff up to speed,” he said.

“I’m glad that was wasted time. I’m glad we don’t have to implement it now.”

In March, Finance Minister Donna Harpauer announced Saskatchewan residents would see PST added to a variety of events, memberships and services. On Tuesday, that decision was walked back due — according to the Ministry of Finance — to a provincial windfall stemming from high resource prices.

Blackwell said he wondered why gym and fitness club memberships were included in the initial plan at all.

“It seems as though it’s something you wouldn’t necessarily want to tax,” he said.

The gym owner also questioned whether walking back the decision was something the provincial government could have foreseen, given consistently high gas and potash prices in Saskatchewan this year.

“It’s not unwelcome news, but you’re kind of wondering do they really know what they’re doing?” he questioned.

He said many businesses like his are still in “recovery mode” after pandemic closures, and the idea of adding the provincial tax was another big hit to some businesses. Blackwell said recovery has been a steady process for his gym.

“It’s been steadily increasing since mandates got lifted,” he said. “With all the different mandates … something that’s day-to-day like the gym, there was a decline for that first year.”

Blackwell said he wasn’t sure that adding the PST onto a membership would have deterred anyone from getting a membership, but said he’d like to see governments encouraging fitness rather than adding barriers.

“I don’t think that six per cent tax would have made somebody change their lifestyle drastically,” he said. “Why wouldn’t you incentivize people to make healthy choices?”

As for the $500 “Affordability Cheques” that will be going out this fall to everyone who’s filed an income tax return in Saskatchewan and is over the age of 18, Blackwell said he hopes to see people spend the money locally.

“Hopefully it doesn’t all go to Amazon,” he added. “Five hundred dollars; that’s just over a year’s gym membership.”

The provincial government said the changes will reduce PST revenue by about $3 million this year.