Belmopan backs off N.H.I. tax increase
Various players in the drama called N.H.I. continue to press their case on the eve of government’s annual budget presentation. Edgy over rumours in the media that government was looking to finance the National Health Insurance scheme through an increase in sales and business taxes, the Chamber of Commerce today weighed in with a concerned letter and emergency meeting with the Prime Minister. According to the Chamber, any tax hikes would be “unreasonable and unacceptable under the current business climate.” The Chamber’s Damian Gough elaborated.
Damian Gough, Membership Services Dir., B.C.C.I.
“As of yesterday, it was rumoured that Government would be contemplating the idea of increasing both sales and business tax to co-finance the N.H.I. scheme. The business community at this point, is in complete opposition to the introduction of, in effect, of a new tax in the form of N.H.I., as well as increasing existing taxes. The current business climate in Belize, having recently gone through major hurricanes, economic slowdowns, decreases in export commodity prices, foreign exchange scarcities. The business community has been saddled with a lot of new and burdensome realities that at this time, trying to encourage or promote implementing a new tax and increased taxations can’t be supported in any way.”
A post meeting press release from the Chamber this evening indicates that government is still undecided on how to approach the financing of N.H.I., but has assured the Chamber that there are no immediate plans to raise sales or business taxes. According to the release, there will be extensive dialogue with the private sector before any decision is made. The original N.H.I. financing plan was for hefty payroll deductions to be shared equally by workers and employers. This would have meant that businesses and their staffs would be subsidising the health care of retirees and others not on the employment rolls. An increase in business and sales tax, however, would spread the cost of N.H.I. more equitably over the entire population. What the Chamber is saying is that it’s members reject both plans, and believe that N.H.I. is just too expensive for a nation like Belize in these particular times. Meanwhile, the private medical community, which has gone deeply in debt to gear up for N.H.I., has been waiting several years for the plan to be implemented. It now looks like they may have to wait a bit longer.
