South Africans dare not be misled by the government’s dishonesty about the tax implications National Health Insurance (NHI) will have for South Africa and its people, Solidarity believes.

5 March 2024

The content of an information brochure on the NHI, which the Department of Health posted on its website, mentions a “small tax” which may initially be required to support the budget to make the NHI a reality. 
Unless the government regards an additional 14% of every employee’s income as a “small tax”, this statement in the brochure is completely devoid of truth.

According to Theuns du Buisson, economic researcher at the Solidarity Research Institute (SRI), research shows that on top of the budget for the current health system around R300 billion would be needed for it.

“The brochure also states that people will be able to pay on their own or in cash for medical services. This is inconsistent with the proposed legislation. The NHI Bill clearly stipulates that a person who does not follow the referral process will not be able to access such medical services at all,” Du Buisson said. The information contained in the brochure in this regard is now creating further confusion among a public that is already confused.

“It is simple. The bill has to be withdrawn and reviewed, or the government should stop lying about it in its brochures,” Du Buisson explained further.

“Treasury has not budgeted for the NHI in this year’s budget as if it was going to be implemented at all. Any information that is communicated is premature, and in this case, it is devoid of all truth. It seems that the government does not know what is in its own bill or what its implications are for every taxpayer .”

Solidarity notes that the Minister of Finance has no appetite for the NHI and Du Buisson believes it is because he realises that it is unworkable at so many levels.

“This is because the Treasury is aware of the fact that there is not enough money. It is time for the Treasury to say so unequivocally and to let the rest of the government abandon this crazy plan.”

Issued by Theuns du Buisson, Economic Researcher: Solidarity Research Institute (SRI), 5 March 2024