In a significant policy shift that has caught the attention of the healthcare sector, the National Treasury has officially resisted Department of Health efforts to scrap Medical Tax Credits. For the first time since 2023, these credits will increase in line with inflation. This move directly contradicts previous proposals to phase out the tax relief to fund the National Health…
Tag: Medical Tax Credits
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Medical Tax Credits: Schemes Urge Godongwana for Budget Boost
South Africa’s two biggest industry bodies for medical schemes are urging Finance Minister Enoch Godongwana to keep medical tax credits in place and increase their value in the upcoming Budget. They argue the credits are critical to keep private cover affordable for working families, especially as costs rise. The call comes as the health department pushes to phase out medical…
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Medical Tax Credits Debate Sparks Warnings From Policy Experts
The ongoing Medical Tax Credits debate in South Africa has taken a sharp turn. Leading health policy experts push back against calls to eliminate medical tax credits (MTCs) to fund the National Health Insurance (NHI) scheme. Professor Alex van den Heever of the Wits School of Governance and Dr Max Price, former Vice-Chancellor of the University of Cape Town, have…
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Medical Scheme Tax Credits: Treasury Resists Reallocation for NHI
A significant policy rift has emerged within the South African government over funding for the National Health Insurance (NHI). This debate concerns the future of medical scheme tax credits. President Cyril Ramaphosa signed the NHI Act into law in May 2024, yet Finance Minister Enoch Godongwana remains reluctant to implement the funding mechanisms required by the law. In a recent…
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Medical Tax Credits Under Investigation by Treasury
The National Treasury confirmed that it is actively investigating the “number of potential implications” of limiting or entirely removing medical tax credits. Proponents have long proposed this move as a key mechanism for raising funds for the government’s sweeping National Health Insurance (NHI) scheme. In a brief statement, the Treasury acknowledged it “had engagements with the Health Department” on the…
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BHF Seeks Clarity for Medical Tax Credit Changes
The Board of Healthcare Funders (BHF) has written to Treasury director-general Duncan Pieterse, demanding “urgent clarity” on the government’s plans to phase out medical scheme tax credits. These credits serve as a financing mechanism for the National Health Insurance (NHI), a controversial initiative. In light of this, BHF seeks clarity on how these changes will impact the healthcare funding landscape.…
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No relief in health budget for US cuts to grants for HIV/AIDS
The Treasury stated on Wednesday that no relief is in the budget to mitigate the impact of US President Donald Trump’s sudden termination of grants to HIV/AIDS organisations in South Africa. The Health Department has yet to finalise its analysis of the required resources. Trump’s administration has thrown organisations reliant on US foreign aid into turmoil worldwide, first with a…