Bill C-323

An Act to amend the Excise Tax Act (mental health services)

Sponsor

Stephen Ellis Conservative

Introduced as a private member’s bill. (These don’t often become law.)

Status

In committee (House), as of June 19, 2024

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Summary

This is from the published bill.

This enactment amends the Excise Tax Act in order to exempt psychotherapy and mental health counselling services from the goods and services tax.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-323s:

C-323 (2021) The National Strategy on Brain Injuries Act

C-323 (2016) An Act to amend the Income Tax Act (rehabilitation of historic property)

C-323 (2013) An Act to amend the Federal Courts Act (international promotion and protection of human rights)

C-323 (2011) An Act to amend the Federal Courts Act (international promotion and protection of human rights)

Votes

June 19, 2024 Passed 3rd reading and adoption of Bill C-323, An Act to amend the Excise Tax Act (mental health services)

June 19, 2024 Passed Bill C-323, An Act to amend the Excise Tax Act (mental health services) (recommittal to a committee)

Sept. 27, 2023 Passed 2nd reading of Bill C-323, An Act to amend the Excise Tax Act (mental health services)

Debate Summary

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-323 seeks to amend the Excise Tax Act to exempt psychotherapy and mental health counseling services from the Goods and Services Tax (GST) and Harmonized Sales Tax (HST). Proponents argue this will improve affordability and access to mental health care, reduce financial burdens on individuals, and level the playing field with other health services already exempt from these taxes. While there is broad support for the bill's objective, concerns have been raised about its potential impact on the existing tax framework and the need for consistent application across provinces.

Conservative

Support for tax exemption: The Conservative party supports Bill C-323, which would exempt psychotherapy and mental health counselling services from the goods and services tax (GST/HST). They believe this will improve access to mental health services by making them more affordable, especially for those without insurance coverage.
Mental health crisis: Members emphasized the severity of the mental health crisis in Canada, with a significant portion of the population affected. They highlighted the long wait times for mental health treatment and the disproportionate impact on youth, racialized minorities, immigrants, and the LGBTQ community.
Government failing Canadians: The Conservatives criticized the Liberal government for failing to adequately address the mental health crisis. They claim the Liberals have not honored their promise of allocating $4.5 billion in mental health transfer funds and for voting down Bill C-283 which sought to get mental health assessments and addiction treatment and recovery in federal penitentiaries.
Bill is a tangible action: The bill would put health service providers on equal footing. Other health services, including optometry, chiropractic, physiotherapy, foot care, and acupuncture, are exempt from charging goods and services taxes.

NDP

Supports the bill: The NDP supports Bill C-323, which would remove GST/HST from psychotherapy and mental health services, viewing it as a step towards parity between mental and physical health care. They commend the bill's tabling, noting its similarity to previous NDP initiatives.
Small step forward: While supporting the bill, the NDP emphasizes that removing taxes is not a complete solution to the mental health crisis. They believe that while reducing costs increases access, many Canadians still cannot afford these services, and the focus should be on universal and free access for all.
Mental health parity: The NDP advocates for parity between mental and physical health care, criticizing the existing two-tiered system and advocating for universal access to mental health support, including psychotherapy, regardless of ability to pay.
Government barriers: The NDP expressed disappointment that the Liberal government appears to be creating barriers to supporting the bill. They urge the government to support the bill and send it to committee to be properly debated.

Bloc

Supports the bill: The Bloc Québécois supports Bill C-323, introduced by a Conservative member, to improve the lives of people in need. Bloc members commended the bill for addressing an important issue and offering concrete help to people struggling with mental health issues.
Addresses tax inequity: The bill seeks to correct an unfair situation where certain mental health services, such as those provided by social workers and other qualified professionals, are subject to GST while similar services provided by doctors and psychologists are exempt. This disparity creates a barrier to accessing essential mental health support.
Supports Quebec's approach: The Bloc emphasized Quebec's leadership in mental health services, highlighting the province's regulated psychotherapy system and community-based support. They voiced concern that federal initiatives might encroach on Quebec's jurisdiction and create confusion for those seeking help.
Need for more funding: Bloc members noted the inadequacy of federal health transfers to the provinces and Quebec has a significant impact on the accessibility of mental health services. Increased funding is needed to meet the rising demand for mental health care and support Quebec's comprehensive mental health policies.

Liberal

Support for the bill: The Liberals support Bill C-323 moving to committee for further study, as they believe in making mental health services more accessible. They acknowledge the bill's aim to exempt psychotherapy and mental health counselling services from GST/HST aligns with their goals.
Tax policy concerns: The Liberals prefer tax changes to be made through the budget process, allowing for thorough debate with provinces and territories to consider trade-offs, balance priorities, and prevent loopholes, ensuring fairness and affordability. They recognize that as this is a private member's bill, this responsibility falls to parliamentarians.
Provincial jurisdiction: The Liberals are concerned that the bill could undermine the established criteria for GST/HST exemptions on healthcare services, which are based on provincial funding and regulatory practices. Since mental health services are not universally covered or regulated by provinces, the bill could set a difficult precedent.
Need for clarity: The Liberals seek clarity on whether the bill would apply uniformly across all provinces and want to understand how each province regulates health care practitioners and defines the services they provide, highlighting the need for further examination at the committee stage.

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