Not all fitness fanatics benefited from lower gym prices when the VAT was reduced from 18 to 7%. Photo: Matthew Mirabelli

A reduction in VAT for sports activities should have ushered in lower gym prices this month but not all fitness fanatics got to benefit.

The VAT rate was reduced to seven per cent from 18 per cent in the Budget with effect from January 1, but a straw poll of some leading gyms conducted by the Times of Malta has delivered mixed results.

Prime Minister Joseph Muscat last week complained that some gyms had failed to pass on the benefit to consumers.

Josie Licari, director at Sky Spirit Fitness Lounge at Skyparks, said his company had passed on the full VAT reduction to consumers. “We reduced all prices accordingly and now a one month single membership costs €68.”

Bertu Camilleri, owner of Bertu’s Gym in Għargħur, told this newspaper a one-month membership fee was reduced to €32 from €35.

The Hilton Living Well Health Club started the year with higher prices but is expected to have lower fees from today, according to manager Paul Sparling.

He said the gym had a standard price increase every January. “This year we initially increased the price from €67 to €68.40 for a one-month membership since the legal notice had not yet been published. The price will now reflect the VAT reduction and will be €62.”

Although the legal notice is still in the process of being prepared, the VAT department released guidelines informing operators of the tax change on January 4. Operators are under no obligation to cut prices, and the consumer watchdog is powerless to influence a sector that is competitive.

The Challenger Fitness Centre, which operates four facilities, was one of the gyms that retained the same pricing structure as last year.

Owner Mark Cuschieri justified the decision, insisting the company had decided last year to increase the yearly package by €15 before the VAT reduction was announced.

It would have been better had the government given gym-goers a tax rebate on membership fees instead

“Our prices are already rock-bottom. We charged €170 for a year’s membership in 2015 and we decided to retain the same price. Our members will continue enjoying exceptional rates,” Mr Cuschieri said.

Frank Gauci from the Ta’ Qali Health and Fitness Centre also explained his gym’s decision to retain last year’s prices.

“We have had complaints from individuals but there are expenses that have to be catered for. It would have been better had government given gym-goers a tax rebate on membership fees instead,” he said, adding the €240 yearly membership fee was among the lowest.

Mr Gauci said members could now use any of the four fitness clubs operated by the company of which two were run on a 24/7 basis.

kurt.sansone@timesofmalta.com