(Reuters) District of Columbia approves 'yoga tax' as part of budget

The District of Columbia Council on Tuesday approved a “yoga tax” on gymnasiums and yoga classes that has angered fitness buffs in the U.S. capital.

The Democratic-controlled council voted 12-1 to give final approval to a $10.6 billion budget for 2015 that included a sales tax on gyms, yoga studios and other athletic businesses, a spokeswoman for Council Chairman Phil Mendelson said.

The budget also includes a substantial income tax cut that would be offset by expanding the existing 5.75 percent sales tax to such services as tanning salons, health clubs, car washes and bowling alleys. The move is expected to raise $5 million a year.

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