National Treasury is investigating the "number of potential implications" of limiting or entirely removing medical tax credits as a mechanism to fund NHI, reported Business Day (4 Nov 2025).
Treasury acknowledged that it is discussing the matter with the Health Department. However, Finance Minister Enoch Godongwana had not yet "made any announcements or stated any policy position on the issue," stressing that the implications "are being investigated internally."
Treasury has already provided R30.4bn in tax credits for medical scheme contributions in the 2022/23 fiscal year. A further R9bn was provided in tax credits for qualifying out-of-pocket medical expenses.
According to Dr Nicholas Crisp, the Deputy-Director General for NHI, a phased approach will be followed, shifting R11bn to the NHI in the 2026/27 financial year, increasing to R34bn in 2028.
The scrapping of tax credits had already been proposed in the original NHI policy paper published in 2011.