Payroll and income tax hike needed for NHI plans

SOUTH AFRICA – A new government factsheet distributed by the Department of Health and the Presidency suggests that increased payroll and income taxes will be imposed to fund the National Health Insurance (NHI). Under the new system, employers and employees will contribute to the NHI in a similar way that contributions are made to the Unemployment Insurance Fund (UIF). Although the factsheet does not state at what level these taxes will be applied, given the scope of the NHI, these new taxes will have to be substantially higher.