Former Minister of Culture, Youth & Sport Dr. Frank Anthony yesterday hammered the government for the taxation that private healthcare would attract from next year.
Speaking during the debate of the proposed 2017 budget, Anthony spent a significant amount of time on the issue and called for the APNU+AFC administration to withdraw the decision. He was, however, told by a member from the government side not to “hold his breath” in this regard.
A fired up Anthony, with the support of his fellow PPP/C MPs, went to yesterday’s sitting prepared as he listed drugs that will now attract taxation and held them up, one after the other, while declaring each time that it “would now attract 14% VAT.” Opposition MPs eventually joined with him in declaring, after each item was listed, that it “would now attract 14% VAT.”
“You all keep singing,” Minister of Social Cohesion Amna Ally said after a while.
Anthony also displayed a condom and stated that safe sex would now attract 14% VAT, much to the amusement to even those on the government side.
He pointed out that previously private healthcare was zero-rated and did not attract VAT but Finance Minister Winston Jordan has proposed removing the zero-rating, which would result in hospitals and pharmacies charging VAT on their services.
While VAT now stands at 16%, Jordan announced that it would be reduced to 14%.
But this issue seemed not to be a bother for the government side as the speaker after Anthony, Minister within the Ministry of Communities Valerie Adams-Patterson, pointed out that there are public hospitals that are free and which offer all the services to the people of this country. “Mr. Speaker, if anybody wish to go to a private hospital, it means you have money and if you want to have cosmetic two million dollar expense at the dentist then you must pay VAT,” Adams-Patterson said, much to the obvious irritation of those on the opposition side. The latter part of her remark was in obvious reference to former Minister of Amerindian Affairs Pauline Sukhai being given state funds while the PPP/C was in office for cosmetic dental expenses.
Describing 2016 as a “historic year,” Dr. Anthony pointed out that the country would have marked its 50th independence anniversary in this year and it was a year when the country would have seen two budgets.
“…But it is also a year of taxation. What a gift for the fiftieth anniversary from the government to the people,” he declared.
He questioned if that was the change the government spoke about while on the campaign trail. He quoted a part of the December 5th editorial of the Stabroek News, which among other things, described the introduction of VAT on utility services as one of the most oppressive budget measures by any government in recent years.
Visionless, ruthless, and careless were all words used by the former minister to describe government’s decision to tax medicine and health services.
“Ramroop, Ramroop,” someone from the government side heckled, while referring to the owner of the pharmaceutical company New GPC, which under the PPP/C was given large contracts to bring in drugs for the public health sector under a single source process.
“So it was meant for Ramroop?” questioned a member from the opposition side.
“Shame! Shame!” chanted some on the opposition side as Anthony continued to point out how the new tax measures will affect those who sought health care privately.
At one point, a very animated Minister of Foreign Affairs Carl Greenidge stated that previously it would have been 16% and not 14% VAT but Anthony pointed out that all of the items and services he listed were zero rated and would not have attracted taxation.
“I am at a loss to describe this level of callousness… where is the compassion?” Anthony questioned, while adding that the measures speak to the nature of the government.
He also pointed out that the new measures will mean that more persons would use the public sector services, which would translate to longer waiting hours and more shortages of drugs and the need for more manpower.
Anthony also noted that money is allocated for a new Ministry of Health for a “cushiony” office for the Minister, when it could have been used to improve the health services offered.
Meanwhile, PPP/C MP Indra Chandarpal, in her presentation, stated that the “good life” that the government has been touting means more taxation for the hardworking Guyanese and more joblessness.
She pointed out that in the last year the government introduced some 185 tax measures and that the administration has failed in a monumental way to convey the “good life.” She said the budget takes more from people than it is giving and she questioned how many of the recommendations proffered by the groups and individuals the government said it consulted were included in the presented budget.
Chandarpal predicted that the government will be out of office soon but Ally, who seemed to be wearing the ‘chief heckler’s’ hat, questioned “When is duh?”
“It would be in 2020, my dear,” responded Chandarpal.
“You dreaming,” fired back Ally.
