Medical aid tax to fund NHI - Gigaba

CAPE TOWN - The government has allocated an additional R4.2 billion to get its National Health Insurance (NHI) off the ground, but it will come at a cost to those with private medical aid.

Finance Minister Malusi Gigaba says below-inflation increases in medical tax credits will be used to fund the NHI.

The government will be spending R205 billion on health in this financial year growing to R240 billion by 2020/21.

But those who rely on a private medical aid scheme will receive less of a tax break over the next three years.