OTTAWA – It pays to be fit and that’s something the federal government is finding out.
According to the parliamentary budget officer, the proposed adult fitness tax break would cost the government between $15 million and $47 million a year in foregone revenue.
A report from budget officer Jean-Denis Frechette says the fitness tax credit could cost a maximum of $268 million over five years.
That number could change because it doesn’t include any of the costs to actually administer the program.
The adult fitness tax credit hasn’t been put in place yet but it was one of the promises put forward by the prime minister during the last election.
The proposed tax break would offer a credit of up to $75 for eligible fitness programs.
The reason why these figures are coming out now is because an unidentified MP asked the parliamentary budget officer to do a cost estimate.
The report says the credit would allow eligible taxpayers to claim a non-refundable tax credit of up to $500 for eligible physical activity program costs against their taxable income at a rate of 15 per cent, or a maximum of $75 deducted from tax payable.