GENERAL Secretary of the Union of Schools Agricultural and Allied Workers (USAAW), Keith Comrie is lobbying the Government to increase its coverage on group health insurance to 90 per cent, as the imposed GCT takes effect.

Comrie, who was speaking at a meeting with country representative of the International Monetary Fund (IMF), Constant Lonkeng Ngouana last Wednesday, is suggesting that the Government increases its percentage of health insurance for public sector workers to 90 per cent, or remove limitation on filling prescriptions.

This, he said, will aid in not having workers feeling oppressed by additional tax burdens they will face as the Government tries to support the shift policy towards indirect taxation.

“At the moment, health insurance limits the employer to paying 80 per cent and the individual pays the remaining 20 per cent, as well as there is a particular amount per benefit.

“What we are looking [at] is if an individual goes to the pharmacy instead of having a limit on the card per year, they should be able to continue using the card as long as it is genuine medical assistance. In essence, have an open policy – just as how the doctor’s visit is unlimited,” Comrie reasoned.

Last week, the Union of Clerical Administration and Supervisory Employees met with Lonkeng to discuss issues surrounding the planned public sector reform among other issues affecting public sector workers.

Finance Minister Audley Shaw, in his budget presentation last month, said the Government would impose a consumption tax on premiums in relation to the provision of health insurance, as part of measures to widen the GCT tax base.

It is expected that the new measure will yield approximately $1.88 billion.

Shaw noted that companies which pay the new General Consumption Tax (GCT) on group health insurance on behalf of their workers will be able to deduct 25 per cent to 33 per cent from their income tax filings. However, companies that are not tax-compliant and do not file company income tax returns would bear the full impact of the GCT on group health premiums.

It is unclear how Government will treat the premium of their employees.

“The medications you receive will now include GCT, so if you are going to pay GCT on medication, this we believe Government should either bear an extra 10 per cent on insurance premiums or remove the limitation on prescribed drugs, to ease the workers,” Comrie said.

He added that a claim covering the two-year period 2017-2016 was expected to be served on the Government last Friday, after which they hope to begin trade negotiations.