Fitness at What Price?
New Tariff could spell catastrophe for Canadian Fitness Industry
Staying fit has its cost; but whether it’s a gym fee, class payment or equipment purchase, being active and healthy has always been worth the price. However, a new Tariff may impact the fitness industry in Canada to the point of crippling many.
The Neighbouring Rights Collective of Canada (NRCC) has proposed a radical increase in the amount of money paid for the use of music in Canadian fitness clubs, through a new Tariff. If certified,
Tariff No: 6 will require commercial club owners to drastically increase the fees they are currently paying to play music in their clubs. Club owners would have to pay two tariffs instead of one. Clubs are already obligated to pay
Tariff 19 fees to the Society of Composers, Authors and Music Publishers (SOCAN). The proposed Tariff No: 6 would see fitness classes paying a royalty of $3 per class, and for fitness ‘venues,’ the monthly rate is 5% of the venue’s gross receipts.
Our sister organization Fitness Australia is facing the exact same threat from a similar organization to the NRCC, and is in the process of raising $1 million dollars to fight the legal challenge.
It should be stated that the Fitness Industry Council of Canada has not seen such an aggressive attack on the Canadian fitness industry since our inception in 2005.
If certified, the NRCC will have the authority to collect the proposed fees retroactive to January 1, 2008. Giving the NRCC the potential to collect over $100 million dollars from our industry alone.
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Pledge Your Support
On February 8th 2008, Fitness Industry Council of Canada (FIC) issued a new national
press release in order to propose a solution to the recent report published by
Stats Canada on sport participation levels in Canada. In the new press release, FIC indicates that the results of an economist report from the Centre for Spatial Economics can provide answers to the growing obesity epidemic in Canada.
The report,
"Economic Benefits of an Adult Fitness Tax Credit", was commissioned by FIC to supplement a
poll conducted by Pollara Inc. in March 2007. When polled more than three in five Canadians supported the idea of expanding the existing federal Children’s Fitness Tax Credit to include all Canadians over the age of sixteen.
The existing federal Children’s Fitness Tax Credit covers eligible fees up to $500 per child under the age of sixteen for enrollment in physical activity programs. The purpose of this credit is to help Canadian children maintain a healthy and active lifestyle.
During the last federal election, the Conservative Party of Canada promised Canadians they would consider extending such a
plan "for all ages."
Implementing an Adult Fitness Tax Credit would give the average Canadian family the opportunity to claim a tax benefit of up to $ 500 per child and adult enrolled in physical activity programs, thereby significantly reducing the barriers and financial burden of exercise.
It is well documented that a regular routine of strength and cardio training combined with balanced nutrition can prevent or significantly lower the risk of developing many diseases, thereby lowering the need for medical attention for the treatment of those diseases.
We are asking The Government of Canada to consider extending the Children’s Fitness Tax Credit to include all active Canadians by introducing an Adult Fitness Tax Credit.
The
Adult Fitness Tax Credit Campaign is your chance to tell the Government of Canada all active Canadians should receive a tax credit for contributing to lowering national health care costs while maintaining an active and healthy lifestyle.
Send an e-postcard now!
