Picture: Ian Landsberg/African News Agency (ANA).
Picture: Ian Landsberg/African News Agency (ANA).

No vaccine tax for new scheme, says Mabuza

By Siyabonga Mkhwanazi Time of article published May 12, 2021

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Deputy President David Mabuza has assured Parliament there will be no extra tax introduced to cover for the No Fault Compensation Fund to pay people who have been injured during the vaccination programme.

The fund was set up recently after pharmaceutical companies producing vaccines asked the government to set it up to cover injuries.

In a question-and-answer session on Wednesday, Mabuza said there was no intention to impose a new tax for the No Fault Compensation Fund.

Health Minister Zweli Mkhize said recently that they have allocated an initial R250 million for the scheme. However, this could be increased in the next financial year.

Mabuza said as part of the agreement with pharmaceutical companies who supply vaccines in the country, they wanted the scheme to be set up before the distribution and supply can happen.

He said the country needed vaccines, with millions of doses already on the way.

However, there will be no new taxes for the fund.

“We have accepted the clause and we are proceeding. I don’t think we are intending to introduce any tax for that purpose. We are proceeding with the fund,” said Mabuza.

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