Treasury must increase tax credits on medical aid contributions, urge AfriForum

AfriForum has once again appealed to the Minister of Finance to abandon any consideration of scrapping tax credits on medical aid contributions in the 2025/26 financial year. AfriForum insists that the Minister instead announces at this year’s budget speech that tax credit for contributions to a medical aid will be increased in line with inflation.

Over the past 12 years, the government has allowed tax credits on medical aid contributions to be reduced by almost R200 per month for a family of four, when taking inflation into account. There is also talk that the National Treasury wants to scrap tax credits on medical aids and use them to help finance National Health Insurance (NHI). This step would be extremely unwise and unjustifiable.

“Abolishing tax credits on medical aid contributions will make it impossible for many people to remain members of a medical aid and will actually worsen inequality in the health sector,” says Louis Boshoff, AfriForum’s Campaign Officer for Health.

“The government often accuses private hospitals and medical aids of excessive prices but always conceals its own role in the rising costs of private healthcare,” says Boshoff. “On top of that, the government wants to pretend that NHI is the only way to allow more people access to private healthcare, while actively implementing policies that make it harder for people to afford medical aid.”

AfriForum also points out that it’s not a given that NHI will be implemented at all, given the numerous constitutional objections to the legislation. “Why does the government want to raise money for a system that will most likely be overturned by the courts? The government pretends to care about the poor but then proposes policies that will hurt those who are under economic pressure,” concludes Boshoff.

AfriForum will continue to fight for civil rights and stand against unfair tax policies. Become a supporter of AfriForum today to fight these and other harmful policies. Visit www.wordlid.co.za for more information.