Shifting from deductions to credits: Unpacking the distributional effects of medical expenditure considerations in South Africa

Senia Nhamo and Edinah Mudimu

No wp-2020-30, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The recent National Health Insurance White Paper proposes redirection of medical tax credits revenue towards the financing of the national health insurance. This raises critical questions about the impact on affordability for the poor as well as fundamental legal implications. The 2012 tax reforms which saw the move from deductions to credits were justified on the basis of equitable income redistribution. This paper examines the redistributive effects of the medical tax credit system.

Keywords: Tax credit; Medical expenses; Tax deductions; Distribution; Inequality; Tax progressivity; South Africa (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-afr and nep-ias
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Citations: View citations in EconPapers (2)

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