Government proposal of a 0.5% rise in VAT as a way to support the National Health Insurance (NHI) Fund have added to concerns from the medical profession and civil society, who suggest alternatives like targeted health levies, closing tax loopholes, and improving efficiency in existing public healthcare expenditure, reported MedicalBrief (16 April 2025)
Dr Mvuyisi Mzukwa, chairperson of the SA Medical Association (SAMA), called VAT an “inherently blunt instrument” that applies equally to all consumers.
“Increasing VAT to fund the NHI risked deepening inequality, the very issue the NHI purported to address regardless of income level, disproportionately affecting lower-income households who already spend a larger share of their income on basic goods and services,” he said.
Government recently published proposed governance regulations for the NHI Fund for public comment. The deadline for comments is 6 June 2025.