Healthcare tax 'realistic' way to boost income

Proposals to create an independent healthcare tax on the Isle of Man is a "realistic" way to generate revenue, the Treasury minister has said.

Alex Allinson has defended proposals to introduce a levy, which have come under fire from a group representing medics.

The Isle of Man Medical Society said plans for such a tax should be abandoned in favour of alternative measures it had put forward to "restructure and reform" Manx Care.

But Allinson said costs were "going up year on year" and "being realistic we will need to look at how we raise extra revenue".

The Treasury said a levy could generate up to £28m a year in additional funding for future health services.

The new charge, which is in response to a 14% yearly rise in health costs, would be deducted from people's incomes via the existing tax return system.

Allinson, who is also a member of the medical society, said as costs continued to rise they had to "keep pace with inflation and some of the extra costs of the health service".

While he agreed with the society's call for reform, he said: "The increased pay costs for those very doctors was forecast to cost an extra £2.4m."

"That money has to come from somewhere," he added.

But Allinson agreed with the group that "fundamental reform of our healthcare service is important".

There was a focus on moving services closer to communities in the health department's mandate to Manx Care, he explained.

That document is due to be debated in Tynwald this month, following an initial delay to its consideration in March.

Healthcare Minister Claire Christian will also ask Tynwald members to approve setting up a committee to review the annual mandate.

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