Though the Guyana Revenue Authority (GRA) has announced some exemptions on private medical services, there are still a significant number of private healthcare services which attract the 14 per cent Value Added Tax (VAT).
Syringes, needles, bandages and hundreds of other items of this nature still attract the burdensome tax.
Over the counter drugs and other health supplements of these kind as well as
Healthcare And Medicine Supplies
vitamins also charge VAT.
The exemptions announced by the tax body do not cover diagnostic products used in hospitals and laboratories such as test strips, swabs, X-rays, blood tests, physician fees, among others.
Hospital fees are also still subjected to VAT, including surgery fees.
Notably, disinfectants and cleaning agents which are a must for private medical institutions also attract VAT.
The GRA had argued in a letter published on March 18, that there is no VAT on medical, dental, hospital, optical or paramedical services in accordance with Paragraph 8 of Schedule II of the Value-Added Tax Act, Chapter 81:05.
According to the GRA, zero-rated items in this regard include (a) A supply of medicines and drugs of a kind available only by prescription; (b) Any of the following medicines for human use (i) Analgesics in the form of liquids, tablets, capsules, or other solid dosage forms for oral or rectal use; (ii) Cough and cold preparations in the form of liquids, tablets, capsules or other solid dosage forms for oral and nasal use; (iii) Antacids and anti-flatulents in the form of liquids, tablets, capsules and other solid dosage forms for oral use; (iv) Laxatives in the form of liquids, tablets, capsules or other solid dosage forms for oral or rectal use; (v) Anthelmintics in the form of liquids, tablets or capsules for oral use; (vi) Oral rehydration preparations in the form of salts or solution of WHO/Pharmacopoeia standards. Diabetic – (i) Glucometers (glucose blood test machines) and glucose blood strips made for use with such machines; (ii) Insulin syringes with needles and devices for the administration of insulin; (d) Spectacles prescribed by an optometrist in the treatment of the human eye and visual system; and (e) crutches.
Many persons including the Private Sector and the parliamentary Opposition had decried Government’s decision to impose tax on private health care.
Moreover, society was appalled by Government’s position, that persons who opt to use private facilities and outlets have money to pay.
Minister within the Communities Ministry, Valerie Patterson had declared in the National Assembly that persons who choose to go private, have money and therefore can afford to pay VAT.
