$8m collected under Health levy

Source: $8m collected under Health levy – DailyNews Live

Bridget Mananavire  25 July 2017

HARARE – Government has collected $8,2 million since January from a Health
Fund levy of $0,05 for every $1 of airtime and mobile data, Finance
minister Patrick Chinamasa has said.

To increase the tax base and meet his $4,1 billion 2017 Budget, which was
flat on 2016, Chinamasa said the continued reliance on a shrinking formal
tax base to fund critical sectors such as health was no longer
sustainable, for both the taxpayer and government.

He then decreed that all economically active individuals contribute
towards funding health services, with the resources raised ring-fenced for
the purchase of drugs and equipment for public hospitals and clinics.

According to a financial statement of the Consolidated Revenue Fund,
government collected $3,1 million in January, $2,8 million in February
and $3,4 million in March.

Government has also set up a committee to look into the administration of
the health levy.

This comes as a massive shortage of basic clinical drugs at major public
health institutions is unfolding.

The situation has been described by health experts as dire, putting the
lives of many people at risk.

Basic pain killers are unavailable in hospitals and most rural clinics,
where the majority of the country’s ever desperate communities live.

Most of the doctors at major referral hospitals are referring patients to
private pharmacies, which are expensive.

The health levy was introduced under the theme “Talk, Surf and Save a
Life.”

“I am encouraged to note the positive contribution of the health levy on
air time, which I introduced in the 2017 National Budget and is already
beginning to prop up resources for the health sector,” Chinamasa said.

Health and Child Care minister David Parirenyatwa told the Daily News that
the health levy is poised to improve drug supply in the country.

“We are happy with the health levy and that money can be used to buy drugs
and equipment.

“The money is going into a dedicated account and we have formed a
committee to see what the priorities are,” Parirenyatwa said.

Currently, 95 percent of the drugs stocks come from donors, while
government is contributing just five percent.

The levy – expected to beef up the $281 million budget allocation for the
Health ministry – comes as an added financial obligation for Zimbabwe’s
mobile network operators.

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