The National Treasury has delayed plans to set up a National Health Insurance (NHI) fund, saying it wants advice from the Davis tax committee on the feasibility of proposals to adjust the medical tax credits to finance it, it said in its Medium-Term Budget Policy Statement (MTBPS).

Moneyweb reports that this follows after the 2017 Budget Speech said it was considering the reduction of the subsidy as part of the financing framework for the NHI.

According to the report, research conducted by Econex suggests that roughly 1.9m people (more than 20% of medical scheme beneficiaries) were at risk of losing their private medical scheme membership if tax credits were removed. National Treasury’s own data suggest that the programme is “well-targeted to lower and middle-income taxpayers”…..more