photo credit: thinkpanama
Due to the new federal budget of Canada that was announced on March 4th, the government is now taking away tax breaks for all popular cosmetic procedures and surgeries including Botox injections, breast and nose surgeries, liposuction, hair replacement and teeth whitening.
Only “medically necessary cosmetic treatments will still be eligible for the tax break’, such as reconstructive surgery after injury, or to correct deformities. These cosmetic treatments will be eligible for the medical expense tax credit which is 15% of eligible unreimbursed medical expenses in excess of $2,024 or 3% of a person’s net income, whichever is less.
This change will allow the federal government to save $40 million a year. However, some patients will have difficulty in paying for the cosmetic procedures as the extra cost could be a few thousand dollars as GST / HST tax (Goods & Services Tax/ Harmonized Sales Tax).
So now Canada is in line with Quebec, United States and United Kingdom in regards to policies of taxing popular cosmetic surgeries and procedures.
The growing popularity of cosmetic procedures and surgeries arises from the following 3 groups of clients:
- teenagers and young adults requesting cosmetic treatment for acne scars
- middle-aged adults eliminating love handles and flabby arms via the popular cosmetic procedure known as liposuction
- older people undergoing cosmetic surgeries to acquire youthful appearances in order to compete in the workforce
“It’s no longer just for the rich and famous. The Average Joe is getting cosmetic procedures,” said Dr. Volinder Dhesi, who performs cosmetic and general dentistry at his Ranchlands Dental practice in Calgary, Alberta, Canada.