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Topic: Re:Pharmacy sell off scandal
Posted by: tim rogerrs
Date/Time: 05/08/14 09:05:00


I think you are confused two-fold.

Firstly - the alleged VAT loophole is nothing of the sort. The NHS is VAT nil-rated. That is to say pays no VAT. Medicines are zero rated (that is are VAT-able, but at a zero rate). Because the NHS pays no VAT, and because of the way that VAT is paid (you claim back up the chain) NHS owned pharmacies have no VAT to claim back. Private pharmacies on the other hand pay VAT on all their other goods and services, and so, when they buy a zero-rated good (medicine), can claim back the implied VAT, FROM THE REST OF THEIR EXISTING VAT COSTS. The NET result is still that the NHS pays no VAT, and that Pharmacies pay some. The other result is that medicines are cheaper.

Secondly - you seem to think that the NHS providing great health INSURANCE is somehow reliant on it also providing SERVICES. Even Germany, one of our most Socialist neighbours realised long-ago this is a disaster and so split off the insurance element (still essentially government run), from the hospitals, doctors etc (basically privately owned). You don't see them complaining about their health services, or having bad outcomes.

By way of analogy, if your car insurer said that any repair, check, etc had to be done in one of their fully owned garages you'd tell them to take a running jump. It would obvious that you'd get an inferior service, at an inflated cost, probably at a time and place that was inconvenient to you. They would under-invest in access, and cut-corners on quality since they would know they would get repeat custom.

Could you explain to me why when it comes to the NHS (health insurance) you don't believe the same....

Entire Thread
TopicDate PostedPosted By
Pharmacy sell off scandal04/08/14 22:21:00 Paul Allen
   Re:Pharmacy sell off scandal04/08/14 22:42:00 Peter Millman
      Re:Re:Pharmacy sell off scandal05/08/14 09:58:00 Vanessa Smith
         Re:Re:Re:Pharmacy sell off scandal05/08/14 12:03:00 Susan Kelly
   Re:Pharmacy sell off scandal05/08/14 09:05:00 tim rogerrs
      Re:Re:Pharmacy sell off scandal05/08/14 12:05:00 Paul Allen

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