Component | Share in Total Health care financing | Source of Data | Ratesa | Computation technique |
---|---|---|---|---|
Taxes | 47% | Â | Â | Â |
Personal Income Taxc | 5.2% | GLSS, 2005/2006 | 5%-20% depending on income level. | Apply the appropriate tax rate and tax thresholds on the gross taxable income (salaries and wages received, income from business or professional practice/activities, part of dividends and interest received and/or accrued on deposits) of working age individuals within each household within the taxable range |
Corporate Income Tax | 7.1% | GLSS, 2005/2006 | Rate is 28% and this is paid quarterly in the case of large companies. | Apportioning the total corporate tax receipts based on the Ministry of Finance data to households based on the tax shifting assumptions. Assumption of tax shifting includes certain percentage borne by shareholders (the GLSS collected information on those who receive dividends) and the rest by households through consumption. The tax shifting assumption was equal (50:50) tax burden shared between consumers and shareholders/capital owners |
Value Added Tax (VAT) | 11.3% | GLSS, 2005/2006 | 15% on standard rate goods and services | The VAT rate is applied to expenditure of goods and services that are standard rated excluding the zero-rated and exempted goods (since 2.5% is specially earmarked fund for education and 2.5% for health services, 10% was considered in the calculations) |
National Health Insurance Levy | 2.4% | GLSS, 2005/2006 | 2.5% on standard rated goods and services | The same distribution across households as VAT but at 2.5%. NHIL rate is applied to expenditure of goods and services that are standard rated excluding the zero-rated and exempted goods (the same goods and services as VAT). |
Import Duty | 8.0% | GLSS, 2005/2006 | Varied depending on item | Comprehensive list of items subject ot import duty and amount received in duty for each item was obtained from Custom Excise and Preventive Service (CEPS) and this amounts were allocated to households based on reported consumption of these imported items from GLSS |
Fuel Levy | 8.5% | GLSS, 2005/2006 | ¢716.72/litre for petrol ¢429.96/litre for Diesel ¢353.88/litre for kerosene | Since fuel is consumed by households (for both personal and public transport) as well as corporate users, estimation involved a process of generating the component attributable to public transport users, users of private transport and those attributable to users in businesses |
Other | 4.3% | GLSS, 2005/2006 | Includes taxes on cigarette, drinks, stamps, airport departures, and unidentified levies. | Not calculated (small share of total revenue) |
Insurance | 5% | Â | Â | Â |
National Health Insurance Scheme | 5% | SHIELD household survey 2008b | Â | Total national health insurance contributions is made up of premium contributions of the informal sector and payroll deduction of formal sector workers |
Out-of-pocket payment | 48% | Â | Â | Â |
OOP payments | 48% | GLSS, 2005/2006 | Â | Comprehensive household expenditure on medicines, consultations, preventive and curative treatments, procedures excluding transportation were summed up |