Gym owners 'baffled' at Fine Gael proposal to increase VAT on memberships

James Cox

The Irish Physical Activity Alliance (IPAA), representing 891 gyms and fitness facilities across the country, is "perplexed" by Fine Gael's recent announcement proposing an increase in VAT on gym memberships from 9 per cent to 11 per cent.

The IPAA said it appreciated the party's commitment to a tax rebate on gym memberships, however, "this proposed VAT hike would negate any benefits by forcing gyms to raise their prices, making them less accessible to the public".

"Such an increase demonstrates a lack of understanding of the current health crisis, and is at odds with the government’s own healthcare policies, including the Healthy Ireland Strategic Initiative."

Gym owners pointed out that physical activity is one of "the most effective ways to reduce the burden on the HSE". Theys said the proposed VAT increase would "raise costs and create barriers to gym membership—the most popular form of exercise for adults in Ireland—impacting over 700,000 people".

The IPAA cited evidence which has found physical activity reduces cancer risk by 30 per cent, cardiovascular disease by 30 per cent, mental health episodes by 40 per cent, and fragility fractures by 65 per cent.

IPAA chair Darina Dunne said: “Physical inactivity already costs the state €1.5 billion per year, and age-related healthcare expenditure is projected to add 3 per cent to our gross national income by 2050. One of the biggest drivers of nursing home admissions in Ireland is declining strength, which starts with muscle loss as early as our 30s.

"Currently, it is projected that we will need an additional 45,000 nursing home beds by 2031 (increase of 180 per cent). We urgently need to reverse this trend."

Ms Dunne added: “The National Physical Activity Guidelines recommend at least 150 minutes of cardiovascular exercise and two resistance training sessions weekly. Given our climate, with frequent rain and long winter nights, we need to ensure people have safe, year-round facilities to meet these guidelines. Gyms provide that solution.

“We can only assume that this perplexing policy proposal is an unintended side effect of Fine Gael’s support for the hospitality industry. In light of this, the IPAA has requested an urgent meeting with Simon Harris to discuss reversing this decision.”