South African taxpayer’s tax credits totalling about R25bn will be phased out in the coming months as a means of funding the incoming National Health Insurance scheme. Business Tech quotes Die Burger as saying that this is according to Dr Mark Blecher, chief director for health and social development at the National Treasury, who was addressing a Government Employees Medical Scheme (GEMS) symposium. According to Blecher, announcements about the phasing out of the credits are expected to be made by Finance Minister Malusi Gigaba during the mid-term budget on 25 October, and in the main budget speech next year.
The report says Blecher warned that lower and middle-class earners should prepare themselves for the loss of these credits – as these are the groups that will be hit the hardest. “It is very important that people whose tax will be amended understand the benefits they receive due to these credits, and what they will be giving up to the NHI,” he said…..more