ANC's proposal for tax increases to fund NHI will trigger a tax revolt

3 July 2023

The ANC government's hasty attempt to push the National Health Insurance (NHI) Bill through Parliament, without a transparent costing mechanism, reveals a concerning disregard for the nation's financial well-being. This move is particularly alarming given the escalating cost of living crisis that is affecting South Africans.

The ANC's proposition of significant tax hikes to finance the ill-conceived NHI places an excessive burden on the already struggling taxpayers. With the current challenging economic climate, the introduction of such drastic fiscal measures could potentially trigger a widespread tax revolt. It seems that the ANC is deliberately provoking such a response from civil society.

The DA unequivocally opposes the audacious efforts of the ANC to transfer the costs of the poorly planned NHI onto the already burdened taxpayers. The omission of NHI provisions in the National Budget and the absence of a viable financial model further demonstrate the ANC's fiscal mismanagement and lack of responsible spending.

Instead of rushing this legislation through Parliament without considering its enormous financial implications, the government should redirect its energies towards creating a sustainable and economically viable model for the public health sector. The ANC government needs to address the chronic issues plaguing our public health sector, such as staff shortages, deteriorating infrastructure, medicine shortages, and outdated or nonexistent ICT infrastructure. Additionally, the rising number of medico-legal claims, particularly in the Eastern Cape, is depleting provincial budgets, indicating the deep-rooted failures of the ANC-led government.

The DA is committed to preserving the fiscal health of our nation and the well-being of our citizens. We will continue to oppose any further financially detrimental decisions made by the ANC government, guided by our unwavering dedication to fiscal prudence, transparency, and a thriving economy.

If the ANC insists on moving forward with the NHI Bill, irresponsibly burdening our citizens in the process, we will challenge it in court. The DA will not allow the reckless political manoeuvres of the ANC to jeopardise the future of South Africans, nor will we allow the already overburdened taxpayers to suffer further.

Issued by Dion George, DA Shadow Minister of Finance, 3 July 2023