Medical aid tax to fund NHI - Gigaba
Malusi Gigaba says government will be spending R205 billion on health in this financial year growing to R240 billion by 2020/21.
CAPE TOWN - The government has allocated an additional R4.2 billion to get its National Health Insurance (NHI) off the ground, but it will come at a cost to those with private medical aid.
Finance Minister Malusi Gigaba says below-inflation increases in medical tax credits will be used to fund the NHI.
The government will be spending R205 billion on health in this financial year growing to R240 billion by 2020/21.
But those who rely on a private medical aid scheme will receive less of a tax break over the next three years.
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The medical tax credit will increase from R303 to R310 per month for the first two beneficiaries and from R204 to R209 for the remaining dependents.
“Our social protection systems continue to protect the poorest and most vulnerable and the government has continued progressively on the path towards the National Health Insurance.”
The government says it will review the scheme after the Davis Tax Committee has made its recommendations.
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(Edited by Zamangwane Shange)