Govt. looking to tax alcohol, tobacco, ‘sugar soft drinks’

July 20, 2017

~ Lee: Not responsible to postpone NHI ~

PHILIPSBURG–Health Minister Emil Lee said on Wednesday that authorities are looking at the possible implementation of a “sin tax” on cigarettes, tobacco and alcohol to help to cover cost associated with the National Health Insurance (NHI) and to reduce the burden on taxes from salaries.

Lee also wants the sin tax to cover “sugar soft drinks.” A sin tax is a tax on items considered undesirable or harmful, such as alcohol or tobacco.

Finance Minister Richard Gibson said NHI has to be financed differently than the way it is being financed currently because using the current system would be un-payable and “create havoc.” One of the ideas is via an indirect tax whereby the tourist population, which is larger than the local population, assists in paying for health care cost.

“If we do this, it would bring about alleviation, not necessarily a reduction. There will still be an increase, but not to the level where it becomes unbearable and un-payable,” Gibson said.

Both ministers were speaking during the weekly Council of Ministers press briefing.

Lee told reporters it would not be a responsible move for authorities to postpone the NHI, the draft of which is expected to be tabled in Parliament before the end of this year. He was responding to the concerns of St. Maarten Hospitality and Trade Association (SHTA) about the draft NHI legislation.

SHTA had, amongst other things, suggested that Government postpone the implementation of NHI, develop proper data and work on its relationship with social partners before implementing the legislation.

“I don’t think that postponing NHI would be responsible,” Lee said noting that authorities are working on the overall healthcare system and if adjustments need to be made later on, then this can be done.

Lee also rebutted SHTA’s comments that the NHI legislation has been prepared under great pressure and stress. He said he had found documents dating back to 2009, when he had been SHTA President, when discussions were already taking place about NHI.

He acknowledged that the recent discussion had been intense, as there are many aspects of the NHI, as well as many decisions and choices that had to be made.

However, he said the ministry had tried to be as comprehensive as possible and had included all local stakeholders, as well as those from the Netherlands and the Caribbean, the latter because their models are similar to St. Maarten’s small population and the Ministry could have learned from what others have been doing and learnt about what worked well and what had not.

He said also that there have been changes to legislation based on discussion with stakeholders. Lee said it is “grossly inaccurate” for SHTA to say that its viewpoints have not been added to the draft NHI. “Enough of their recommendations have been included,” he said.

In further responding to SHTA’s comments, which were published in The Daily Herald of Friday, July 14, Lee said the country’s financial situation cannot be a barrier to moving on, and authorities cannot wait until the financial situation improves to talk about NHI.

“Government is financially challenged, but Government cannot stop working on processes in the meantime,” he said.

He said also that the draft NHI legislation has gone through the Council of Ministers, the Social Economic Council SER and the Council of Advice. The Ministry has always tried to do things responsibly, he said, adding that a significant number of changes have been made to the NHI.

He said Government originally had been instructed to complete the NHI by the end of 2016, but based on discussions regarding, amongst other things, the complicated process involved for NHI, authorities were given up to the end of this year to finalise it.

There are many persons who are unable to access health care via private insurance companies, as pre-existing conditions are not covered. He said also that many persons “fall through the cracks” under the current systems in place and it would be irresponsible for Government to not address this.

The Health Minister “appreciates” the dialogue on the process, noting that it is “far too important” for this subject to take place in isolation. He reiterated that health care reform is a “difficult topic” that “divides countries” as is the case in the United States. “It is a heated and emotional discussion,” he said.

Regarding the instruction to St. Maarten to finalise the NHI, Lee said that rather than taking an ad hoc approach and trying to plug small problems, Government is being responsible by trying to re-engineer health care and taking a constructive approach.