Shaw: GCT on group health insurance will be income-tax deductible for companies
The Finance Minister says companies that pay the new General Consumption Tax on group health insurance on behalf of their workers will be able to deduct it from their income tax filings.
The parliamentary opposition and other groups have raised concern about the Government’s plan to apply general consumption tax to group health insurance.
Opposition spokesman on finance, Dr Peter Phillips, has said it could lead to industrial unrest as most companies are not prepared to pay the additional sums on behalf of their workers.
IN PHOTO: opposition spokesman on finance Peter Phillips
The Medical Association of Jamaica said it was worried that the measure will result in high levels of under insurance and force more persons towards the already overburdened public health system.
Addressing those concerns this afternoon, Shaw explained that tax-compliant companies would not lose revenue by paying the tax for their employees.
But he said if employees were to pay the GCT, the additional cost would be minimal.
According to Shaw, the cost would be a very small in comparison to the income tax break the employee would be receiving under the Government’s tax plan: