Medicash has hit back at chancellor George Osborne's claim that the hike in insurance premium tax (IPT) on private medical insurance brings the UK into line with Europe.
The cash plan provider has highlighted that out of 29 EU countries, twelve have exempt healthcare from IPT whereas three do not have IPT at all.
Only six have IPT on healthcare above 6%: Belgium (9.25%), France (9%), Greece (10%), Slovenia (6.5%), Slovakia (9.5%) and the UK (9.5%).
Sue Weir, chief executive of Medicash said: "Businesses in the UK need to realise that this tax puts them at a disadvantage in terms of growth and profits and the health and wellbeing of their employees if they are unable to cover the rise in providing health insurance for those employees.
"By putting the UK at a tax disadvantage to Europe the high level of IPT will impact negatively on UK business productivity and both the physical and mental health of our employees."
Further reading
What does IPT mean for the future of cash plans?
Best foot forward for IPT hike
The IPT earthquake sending shockwaves to PMI sector
