VAT on health insurance should be reduced – MP proposal


October 3, Fineko/abc.az. There is such a tradition in the world as VAT reduction in the sphere of medical services, unlike other spheres. The use of this in our country, of course, will help carry out work more effectively in the field of compulsory health insurance, stated MP Rashad Mahmudov in an interview for news agency ABC.AZ.

In particular, he says that even before compulsory health insurance in Azerbaijan, in accord with the law, medical services were considered free of charge, but in terms of the provision of paid services, the burden of VAT clearly falls in fact on the citizen, not on the hospital. 

"If today the Agency for Compulsory Health Insurance reimburses that, so it is a serious burden on the Agency as a structure of the state. And after that, if the issue of VAT is not removed, the ACHI will again pay a high amount. That is why I think that economists should bring this question to a broad discussion, based on world experience, and in accordance with this it would be advisable not to liquidate it completely, but to reduce it by half and even cut to 3%, as in some countries." 
Author: Elmir Murad