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  • Medical tax credits and the NHI

Medical tax credits and the NHI

20 February 2019

The 2018 Budget announced below-inflation increases to medical tax credits (over the next 3 years), to assist Government in implementing the National Health Insurance System. The Minister, however, did not announce increases in the medical tax credit (from 2018) today.

Introducing a National Health Insurance System is welcomed and will hopefully provide appropriate benefit to South Africans who need it most. However, shifting some of the cost to taxpayers across the tax base, only places further pressure on the pockets of South Africa’s hard pressed taxpayers. Government’s decision to not increase may be the start of a trend, following that of the interest earnings exemption threshold. If so, this may reduce the value of the medical credit in future in real terms.

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