ANC wants tax hikes to finance unconstitutional NHI
4 March 2024
The DA notes National Treasury’s intention to levy additional taxes on hard-working South Africans to fund the National Health Insurance (NHI).
The projected financial impacts of the NHI are alarming and estimates have reached as high as R859 billion per annum. Since the introduction of the NHI Bill, the government has remained elusive about its funding. The Treasury has now indicated plans to hike taxes, by an undetermined amount, to finance the impractical and destined-to-fail NHI.
The South African economy is already beset by one of the most onerous tax regimes in the world and any tax increase will be unduly burdensome, highly regressive, and disproportionately impact lower-income households.
South Africans are already battling a cost-of-living crisis without any relief from government – that could very easily cut fuel taxes and expand the zero-vat-rated food basket. Yet, the government’s indifference is palpable, especially as they consider tax increases while many citizens struggle to meet basic needs.