01-08-2025
Scrapping medical aid tax credit could push millions into public healthcare
Millions of South Africans face the possibility of being unable to afford medical aid, if plans go ahead to scrap the medical aid tax credit.
The Medical Scheme Fees Tax Credit applies to fees paid by a taxpayer to a medical scheme, and is used to reduce the normal tax a person pays.
The rebates incentivise people to have private health cover, allowing the state to concentrate on public healthcare services for the poorest of the poor.
Currently, for a family of four, the MTC works out at around R1 220 less tax payable per month.
For the average working class family that could be the difference between staying on a medical scheme and having to use the public healthcare system, says Naidoo.
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