Financing the ANC’s controversial plan for universal health coverage will require raising an additional R240bn-R270bn and place an improbably high burden on SA’s small tax base, according to research commissioned by the country’s biggest doctor organisation in its legal challenge to the National Health Insurance (NHI) Act.

Raising this amount of tax revenue would require increasing VAT from 15% to 23%, instituting a 40% surcharge on personal income tax, introducing a payroll tax of 13.4% or increasing corporate income tax from 27% to 45%, the SA Medical Association (Sama) said in a report filed with its high court application this week...

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