Health groups are expecting a budget allocation to be announced in this week’s Budget for the roll-out of anti-retroviral therapy within the public health sector. They believe there might also be an announcement on tax concessions for companies that provide HIV/Aids treatment for their employees and their dependents as well as some amendments to VAT to exempt certain medicines like anti-retrovirals.
Other than that, however, they’re expecting little change.
Dr Leighton McDonald, executive manager of health risk management specialists Qualsa, which provides comprehensive HIV/Aids programmes to manage the treatment of HIV-infected individuals, says he would like to see the roll-out of anti-retroviral therapy within the public health sector with a specific allocation for improving systems and infrastructure for this purpose. This would include the training of healthcare professionals.
He would also like to see an increased focus on the provision of HIV awareness and prevention programmes, with a specific emphasis on school- based programmes.
Moreover, he believes there should be structured programmes for the management of children orphaned as a result of the epidemic, with financial grants to their guardians for this purpose.
McDonald would also like to see tax and financial incentives for business to encourage the roll-out of HIV treatment programmes in the workplace.
He believes that a budget allocation for the roll-out of anti-retroviral therapy within the public health sector will be announced on Wednesday. But, other than that, he expects little change.
Blum Khan, CEO of Metropolitan Health Group, administrator of the largest employer-backed medical schemes in South Africa, says he is expecting tax concessions in Wednesday’s national Budget for companies that provide HIV/Aids treatment for its employees and their dependents. He is also expecting some amendments to VAT to exempt certain medicines, for example anti-retrovirals.
He would also like to see tax breaks for employers to incentivise the subsidising of healthcare for lower income employees. “This will assist with expanding the market and take the burden away from the State hospital facilities. Improved tax breaks will incentivise companies to subsidise the lower income earners,” he believes.
Khan is also hoping for a revision of VAT and the fringe benefit tax legislation so “that we do not impose tax burdens on healthcare and HIV/Aids benefits”.
“In reality healthcare and HIV/Aids treatment cannot be classified as fringe benefits. The individual has no choice when it comes to healthcare or HIV/Aids treatment, so it cannot be classified as a fringe benefit,” he points out.
“MHG, which provides some of the biggest employer-backed medical schemes with HIV management programmes, would also support an incentivised tax structure for employers who fund antiretroviral treatment for employees,” he adds. ‒ I-Net Bridge