Data provided by McGregor BFA
All data is delayed
Loading...
See More
Where am I? Home

Tax on NHI not expected in short term

Sep 23 2011 10:43 Sapa

Related Articles

Shisana: NHI will reduce spending

NHI to bite health insurers' profits

NHI could be 'unconstitutional'

NHI sparks mixed responses

Medical aid fees to guide NHI payments

 
Johannesburg - A tax to fund the government's national health insurance (NHI) system will not be introduced in the short term, deputy director general public finance in the National Treasury Andrew Donaldson was reported as saying this week.

The Hospital Association of South Africa (Hasa) said on Friday that Donaldson had indicated that considering South Africa's constrained fiscus, it would be difficult to raise additional taxes at this stage.

He said discussion papers would be released early next year before financing arrangements for healthcare would be changed.

Minister of Finance Pravin Gordhan has raised several options for increasing the funding required for NHI, but "no decision had been taken on specific funding arrangements", Donaldson said.

There would also be continued provision for the revitalisation of hospitals, with major rebuilding projects such as at Chris Hani-Baragwanath hospital.

According to the Hasa statement, Donaldson said that increasing expenditure on public healthcare from 4% to 6.2% of gross domestic product - as estimated in the green paper on NHI - would place a substantial strain on the country's public finances.

He also highlighted that the shortage of supplies, nurses and doctors in the public sector would limit the amount that could be spent on NHI.

"A great deal of work also needs to be done to address bureaucratic barriers to service delivery," he said.

"Merging public and private procurement arrangements will be an important part of healthcare reforms.

"The integration of supply chain management between public and private sectors could help lower costs and bring modern logistics into the delivery of healthcare in the public sector," he said.
nhi  |  health  |  taxes  |  private hospitals
NEXT ON FIN24X

 
 
Comment on this story
8 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

For detailed Unit Trust information, click here.

We're Talking About...

The Debt Issue

The Debt Issue brings you the latest debt news, tips on how to deal with and avoid debt, a panel of debt experts and real life debt stories from across South Africa.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...