n his recent Budget Speech, Finance Minister Enoch Godongwana announced that medical scheme tax credits will remain in place. - The Citizen (27 March 2025).
In reaction to the announcement, Thoneshan Naidoo, CEO of the Health Funders Association (HFA), said tax credits are not merely a benefit for high-income earners but a vital support for ordinary working South Africans.
A common misconception is that medical scheme tax credits, which cost the government approximately R30bn annually, primarily benefit the wealthy. However, according to data from the National Treasury 21% (R6.3bn) of the tax credits go to individuals earning less than R250,000 annually and 64% (R19bn) benefit those earning under R500,000 annually, said Naidoo.
This aligns with SA Revenue Service (SARS) figures, showing that 80% of employed South Africans fall under the R500,000 income bracket.
By incentivising private healthcare, the credits alleviate pressure on state facilities and enable Government to concentrate its resources on the most vulnerable populations, said Naidoo.