Saturday, November 28, 2009
Ailing Disability Insurance Hopes For Tax Boost
The campaign over a proposed tax increase to prop up the state-run disability insurance scheme is slowly gathering pace ahead of a nationwide vote.
Most political parties, the government as well as various organisations and pressure groups have come out in favour of a 0.4 per cent hike in value added tax (VAT). The rightwing Swiss People's Party is up against an overwhelming alliance on September 27.
Over the past two weeks several small political parties, the farmers' association and organisations for the disabled all issued statements recommending voters approve the proposal.
On Friday a group of mainly retired politicians of the People's Party became the latest committee to outline its reasons against the increase.
In line with their party they slammed the planned temporary fiscal charge as a "false and dangerous compromise" which jeopardised the financial future of the state old age pension scheme – another tenet of the Swiss social security system.
The reason being that the proposal includes an injection worth several billion francs from the pension scheme into the disability insurance.
The rightwing party earlier warned that raising taxes would slow private consumption and put a financial strain on families.
"An increase is poison for the purchasing power of consumers," parliamentarian and businessmen Peter Spuhler argued at a news conference in June when his People's Party launched its campaign.
VAT is currently 7.6 per cent, with reduced rates for the hotel industry and for essential consumer goods.
Opponents also claim money could be saved by cracking down on fraudsters, notably beneficiaries of Turkish and East European origin, who allegedly cheat the Swiss authorities by faking mental illness.
« We are no longer able to help those in need if the disability insurance is in trouble. » Christophe Darbellay, Christian Democratic Party
Source
Sunday, November 15, 2009
Tax Exemption Eyed to Help Contain Influenza A
Individuals concerned about the rapidly spreading influenza A here will be able to receive either anti-viral vaccine or treatment at a cheaper cost later this month.
This follows government steps to lift taxes on both imported and locally manufactured anti-influenza medical goods.
The Ministry of Strategy and Finance said Sunday that it would temporarily exempt foreign and domestic flu vaccines and treatments from value-added tax (VAT) and tariffs until the end of 2010 to help more concerned people obtain medical treatment at lower costs and prevent the spread of the deadly epidemic.
Currently, importers of H1N1 vaccines from abroad are subject to an 8-percent rate and have to pay an additional 10-percent VAT, making flu-related medical costs substantially higher.
The ministry plans to submit the changes in tax-related ordinances to a Cabinet meeting on Sept. 15. If approved, they will go into effective immediately.
The government is scrambling to secure as many influenza A vaccine doses as possible in preparation for a possible flu pandemic this fall and winter. It has ordered 10 million doses, with additional purchases planned next year.
It aims to vaccinate 13 million people or 27 percent of the population by February 2010.
Since the first case of the disease was confirmed in early May, four H1N1 infected patients have died, with more than 4,000 falling ill from the disease.
Additionally, patients suffering from seven illnesses, including AIDS and Wilson's disease, will be able to receive treatment at cheaper costs as tariffs levied on imported medicines and other medical treatments will be abolished.
The government expects the tariff exemption to help about 6,000 patients across the nation save an average 500,000 won per person annually.
This follows government steps to lift taxes on both imported and locally manufactured anti-influenza medical goods.
The Ministry of Strategy and Finance said Sunday that it would temporarily exempt foreign and domestic flu vaccines and treatments from value-added tax (VAT) and tariffs until the end of 2010 to help more concerned people obtain medical treatment at lower costs and prevent the spread of the deadly epidemic.
Currently, importers of H1N1 vaccines from abroad are subject to an 8-percent rate and have to pay an additional 10-percent VAT, making flu-related medical costs substantially higher.
The ministry plans to submit the changes in tax-related ordinances to a Cabinet meeting on Sept. 15. If approved, they will go into effective immediately.
The government is scrambling to secure as many influenza A vaccine doses as possible in preparation for a possible flu pandemic this fall and winter. It has ordered 10 million doses, with additional purchases planned next year.
It aims to vaccinate 13 million people or 27 percent of the population by February 2010.
Since the first case of the disease was confirmed in early May, four H1N1 infected patients have died, with more than 4,000 falling ill from the disease.
Additionally, patients suffering from seven illnesses, including AIDS and Wilson's disease, will be able to receive treatment at cheaper costs as tariffs levied on imported medicines and other medical treatments will be abolished.
The government expects the tariff exemption to help about 6,000 patients across the nation save an average 500,000 won per person annually.