$150M budgeted for frontline workers – President Ali

…Govt removes VAT on all medical supplies; 4 hospitals to be upgraded

The coronavirus disease (COVID-19) pandemic has propelled health-care workers to the frontline as they are the ones risking their lives to ensure that the population stay safe. In appreciation of their efforts, President Irfaan Ali said that his Government has set aside $150 million for frontline workers.

The announcement was made on Monday when President Ali held a press conference to inform the nation of some of the expected measures to be announced when the budget is presented on Wednesday.
Back in August, Vice President Bharrat Jagdeo had assured that workers on the frontline in the fight against the potentially deadly COVID-19 pandemic would receive “appropriate recognition” for their efforts in the emergency budget.
The Human Services and Social Security Ministry had also announced that it would be expanding its childcare assistance programme to provide free child care to frontline workers who are providing an essential service or key public services during the COVID-19 pandemic.
Human Services and Social Security Minister, Dr Vindhya Persaud noted that in the first phase, the programme would be piloted to benefit healthcare workers, Police Officers, prison officers, fire officers, security officers and army officers, with children who are below the age of seven. Through the programme, the Ministry will make direct payments for services to childcare facilities. She had stated that the Ministry will review the programme with a view of expanding it to other categories of workers before the end of the year.
President Ali also related that Value Added Tax (VAT) on all medical supplies would be removed.
“Now that the COVID-19 pandemic is here, we know the strain it is causing on the population in terms of not only addressing issues of COVID-19 but all medical supplies. This (the removal of VAT on medical supplies) will create an even playing field. This would put back money in the pockets of pensioners, families, children, medical institutions and this really would reduce the cost of healthcare. So, the removal of VAT on all medical supplies would bring tremendous benefit to all of the population,” President Ali said.
The Guyana Revenue Authority (GRA), back in March, announced a waiver of VAT on medical supplies to be used in the COVID-19 fight. It was related that the Government had zero-rated the VAT on all medical supplies for the testing, prevention, and treatment of COVID-19 for the period March 26, 2020 to June 30, 2020.
The list included test kits, protective garments, thermometers, disinfectants, patient-monitoring devices, medical ventilators, rubbing alcohol, Vitamin C tablets, and soaps.

Corporate tax removal
Meanwhile, the People’s Progressive Party/Civic (PPP/C) Government, in order to make healthcare more affordable and to support the vision of the healthcare sector becoming a foreign currency earner, has removed corporate taxes on private health care.
Of the other announcements on the health sector, the President also related that the New Amsterdam, Suddie, Leonora and West Demerara Hospitals are all going to be upgraded to support a higher quality of care delivery.