CAPE TOWN – The National Treasury announced that South Africa would increase spending on its National Health Insurance programme at an average annual rate of 36.6 percent, from R1.2 billion in 2018/19 to R3 billion in 2021/22, the National Treasury said on Wednesday.
Commenting on the Budget, Alwina Brand, PwC Tax Partner said that the insurance industry has seen a number of substantial changes to tax legislation over the past number of years.
Brand said: "The most significant of these were the changes brought about by the implementation of Solvency Assessment Management (“SAM”) and the promulgation of the new Insurance Act No. 18 of 2017 ('the 2017 Insurance Act')."
"The new legislation brought about a number of anomalies and also situations that required additional clarification. Most of these amendments and clarifications were enacted from 2015 to 2018. It appears as if the last of the refinements to the new legislation would comprise the tidying of references to the old legislation governing insurers, ie the Long-Term Insurance Act (1998) and the Short-Term Insurance Act (1998) to that of the 2017 Insurance Act."
Brand stated that it is also proposed that legislation is introduced to address the transfer of assets that is required between the Risk Policy Fund (introduced in recent years) and the Untaxed Policyholder Fund to curb the administrative burden created in this regard.