DA Accuses Motsoaledi of Pushing Unapproved Tax Plan to Fund NHI

News Desk

October 31, 2025

3 min read

DA says Health Minister has not spoken to Treasury about tax increases.
DA Accuses Motsoaledi of Pushing Unapproved Tax Plan to Fund NHI
Image by marionbrun from Pixabay

The Democratic Alliance (DA) has accused Health Minister Aaron Motsoaledi of proposing new taxes to fund the National Health Insurance (NHI) without Treasury’s approval or public consultation.

According to the DA, Motsoaledi’s plan would redirect several existing revenue streams – including medical scheme tax credits, civil servant medical subsidies, and portions of provincial health budgets – while introducing additional payroll and personal income tax surcharges. The party said these measures amount to an: “unsanctioned tax increase” that bypasses Parliament’s oversight.

DA Shadow Minister of Health, Michele Clarke, said the party has obtained information indicating that National Treasury has not been consulted on the proposed funding model. “This kind of backdoor taxation will cripple workers and taxpayers who are already overburdened,” she said, adding that the approach reflects: “the ANC’s disregard for due process and fiscal accountability.”

The DA also cited concerns over potential corruption, referencing recent allegations surrounding a R1.2 billion oxygen-plant tender as evidence that the health department cannot be trusted to manage vast new funding flows.

Clarke urged President Cyril Ramaphosa to withdraw the NHI Act and restart consultations to develop a more transparent and financially sustainable model. “South Africans deserve quality universal healthcare, but not through reckless taxation and centralised control,” she said.

The party said it will submit parliamentary questions to confirm whether Treasury approved any new taxes for NHI and whether Motsoaledi’s department acted outside its legal mandate.

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