New coalition lobbies for non-prescription drugs
Ottawa not expected to give up tax revenues easily
GILLIAN LIVINGSTON (CP)
A fledgling coalition of makers of natural health products and non-prescription drugs is setting its sights on having its products exempted from the Goods and Services Tax.
"Prescription drugs are GST-free. We believe that natural health products, used as an alternative, should also be GST-free," said Donna Herringer, president of the Canadian Health Food Association, the group that launched the lobby effort a few months ago. The non-profit association represents makers and sellers of vitamins, herbs, homeopathic remedies, supplements, packaged foods and organic foods.
The coalition hopes to have its products made income tax-deductible and eventually covered by health insurance plans.
The group, called the Canadian Coalition for Tax-Free Health, argues that strict new Health Canada regulations taking effect in December will be more costly for its products, so they should be treated the same as prescription drugs.
"It doesn't seem equitable that they're taxing people who are trying to do something for themselves, especially when (it) ... actually saves the government money on the other side of the ledger, which is health-care expenditures," said David Skinner, president of the Nonprescription Drug Manufacturers Association of Canada, which is part of the coalition.
Many Canadians view the country's health-care system as free, but "health-care costs have gone so far into the area of barely affordable that the government has had to look at what other things Canadians can do to help out," he said.
Ottawa takes in about $250 million a year in GST revenue from so-called "self-care" products, Skinner said.
The federal finance department takes into account suggestions from organizations as it forms tax policy, spokeswoman Andr�e Houde said.
"We have to have a very convincing argument," Herringer said, noting that the federal government will not give up tax dollars easily.
The main issue is how beneficial it would be for the government to give financial incentives to people to take natural health products, said John Graham, director of health policy research at the Fraser Institute, a right-wing think-tank.
"You get to a point where you say: Should your membership in your health club be given by medicare? Should your bicycle be given by medicare?" Graham said in an interview from Vancouver.
Back to top of Document