Treasury stalls NHI tax credits scheme
The Treasury has delayed plans to set up a National Health Insurance fund, saying it wants advice first on the feasibility of proposals to adjust the medical tax credits to finance it.
Finance Minister Malusi Gigaba was meant to expand in his speech on Wednesday on proposals made in February's Budget that the NHI fund may be partially funded by a reduction in tax credits provided to medical aid scheme members.
But Treasury now says more work needs to be done and has published an analysis of the medical tax credit scheme that shows more than half (56%) of the total credits claimed in 2014-2015 accrued to 1.9 million taxpayers with a taxable income below R300,000, many of whom were workers who belonged to medical schemes.
"Tax data indicates that the programme is well-targeted to lower- and middle-income tax-payers," it says in the budget statement.