The Tribune

EDITOR, The Tribune.

Please allow me space to touch on the upcoming changes to VAT payments as it relates to health/medical insurances.

Before I get into that, let me first remind the Bahamian public that they, the consumers, have always been on the paying end of the stick when it comes to VAT. In actuality, businesses do not pay VAT, but rather act as agents of the government to collect VAT from the consumer for services and goods. They (businesses) are then able to file at the end of the year for a refund/rebate on VAT they paid on their goods.

Now let us look at what is going to happen effective April 1, 2023, when 100% VAT will be paid by the consumer for medical insurance claims. This will mean that the consumer (insured person) is paying VAT twice, both on the premium and on the claim. While I understand that this may be some sort of plan to eventually force persons to use NHI, the present administration should perhaps look at ways to ensure NHI is more efficient and effective. This new tax that will be placed on the insured, who in many instances is making a great sacrifice to pay medical insurance premiums, will lead to a decrease in the number of persons able to afford individual medical coverage. Small brokers/agents that are carriers mainly for health/medical insurance plans will feel the pinch and some may eventually be forced to close. This will then add to the unemployment numbers.

Those persons that are a part of a group coverage may find it more beneficial to seek medical attention overseas to eliminate the additional VAT charges. This then has an effect on the economy as funds are being spent abroad that could be spent at home. The increase in revenue from VAT that this administration is seeking to gain might just backfire and create a bigger strain on an already struggling health system.

Bahamians are finding it very difficult to afford health insurance and we see daily the cries of many for assistance in this area. Unless we, as a people, as a nation, make drastic changes to our lifestyles, there will always be a need for a health system that works efficiently. I once again emphasise that the health of a nation is the wealth of a nation and if the system is working, persons should not and, I am almost certain, would not have an issue paying basic costs for services.

The already high cost of residential/home insurance premiums have caused many home owners to take the risk of non-coverage. Please let us not have the same thing happen with medical insurance.

Let us get our government health care systems to another level that it can adequately service the needs of the population before we add another burden.

I feel that there are other ways and options that can and should be looked at to generate additional revenue, rather than taxing the already struggling small man.

Let us make this make sense.

Vanessa A Scott, JP

Nassau

February 7, 2023