Doctors warn patients will foot new VAT bill

DOCTORS yesterday warned that the government’s intention to introduce a 5.0 per cent VAT on medical services would end up with patients footing the bill.

This “on one hand will deal a blow to the already ailing private sector and also force patients to resort to state hospitals with all the consequences that would entail,” the medical association said.

State facilities are already seeing a rise of around 30 per cent in the number of patients, believed to be the result of the economic crisis.

The association said other ways must be found to reinforce state finances and that taxing medical services should be avoided.

“We consider this intention unfair and misplaced and we want to believe there will be second thoughts,” the association said.

Andreas Demetriou, the association’s chairman, said this would also mean higher insurance premiums as companies will transfer the increased costs on to policyholders. 

Doctors said they will seek a meeting with the finance minister to discuss the matter.

Main opposition DISY urged the government to think again.

DISY deputy chairman Averof Neophytou said the price would be paid by the people who are forced to go private because they suffer the low quality healthcare provided by state hospitals.

Just because the government believes doctors are tax evading, it is raiding patients instead, Neophytou said.

The DISY official said he was on the government’s side when it came to fighting tax evasion but the solution was not to turn on the underprivileged because others fail to pay their dues.

Doctors in Cyprus are notorious for not issuing receipts but people, who often moan about tax evasion, almost never ask for one and rarely if ever do they complain to the medical association.