Medical Tax Credits Count

WIN-WIN: PEOPLE STAY ON SCHEMES REDUCES PUBLIC HEALTH BURDEN

- Ina Opperman

Medical tax credits are important in South Africa because they make it possible for consumers of all income groups to stay on medical aid schemes and not become dependent on the public health system.

Finance Minister Enoch Godongwana's recent announcement in his budget speech that medical scheme tax credits will remain intact is a tacit acknowledgment of their vital role in sustaining South Africa's health care system, Thoneshan Naidoo, CEO of the Health Funders Association, said.

Who benefits from medical scheme tax credits?

Naidoo said it is a common misconception that medical scheme tax credits, amounting to approximately R30 billion annually, primarily benefit high-income earners. He pointed out, data from National Treasury tells a different story:

• 21% (R6.3 billion) of the R30 billion benefits individuals earning below R250 000 per year; and