Gordhan doesn’t know what tax is

Pravin Gordhan is on record saying NHI won’t increase tax burden.

He clearly doesn’t understand income and expenditure. If government spends more, more tax must be collected. If employees don’t pay the tax, employers must pay the tax. If this is directly related to labour, you’ve just increased the cost of labour without a commensurate increase in productivity. Labour less attractive, fewer jobs.

The only way for NHI to not cost is if it replaces current health expenditure, in which case it’s about using funds more effectively. This is not the message I’m hearing.

Published by David Kirk

David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation. He has been involved in significant insurance projects across Sub Saharan Africa and in the Middle East.