“VAT will effectively have to be doubled,” says Solidarity. The Solidarity Research Institute has released a report detailing the enormous amount of funding necessary to effectively implement the National Health Insurance (NHI) scheme.
The numbers far exceed those previously calculated by the Health Minister, Aaron Motsoaledi. What’s more worrying is the heavy impact this will have on South African taxpayers.
According to Solidarity researcher, Morné Malan, funding required by the NHI is closer to R357 billion with a deficit of approximately R210 billion.
NHI: How does it affect the taxpayer?
Malan outlined the exorbitant fees which would need to be carried by the South African taxpayer. According to his research, value-added tax (VAT) would effectively double in order to carry the weight of NHI.
Commenting on the burden taxpayers will be forced to carry, Malan said:
“It is very difficult to determine from where the additional mon
Continue reading…
