Tax remains on group health insurance; TEF to be centralised

It appears the government will not yield to appeals to roll back the General Consumption Tax (GCT) on health insurance premiums.
    
The measure is set to come into effect on April 3.
    
Insurance companies and small businesses have argued that this will make the benefit too expensive and will result in fewer persons being insured.
    
The Finance Minister on Wednesday afternoon cited an example of a $5,000 shared premium as he defended the tax measure.
                                                          
"If that premium of $5,000 is shared between employer and employee, the employee pays $1,000 in the present contribution. When we impose the GCT of 16.5%, (that is) $165. That is what we are asking that employee to pay.

"That typical employee is part of the $1.5 (million) plan. We are giving back to them $7,000, $8,000, $9,000, $10,000 per month. If they are at $1.5 million, they will be getting $18,000 per month. You want to tell me that an employee wouldn't want to contribute $165 in return?" Mr. Shaw countered.      

Centralising TEF
 
In the meatime, the government is pushing ahead with its plan to centralize funding from public bodies into the Consolidated Fund.
  
The Jamaica Hotel and Tourist Association (JHTA) had objected to the government taking money from the Tourism Enhancement Fund (TEF), which is one of the first three entities identified for this treatment.
  
The group met with the Finance Minister this week but had no success in getting the measure rescinded.