THE government today said there will be no sales and service tax on traditional and complementary medicine (TCM).
In a statement, the Finance Ministry said the decision was made after taking into consideration feedback from related stakeholders and TCM practitioners.
Earlier this year, Bandar Kuching MP Dr Kelvin Yii, among others, urged the government to reconsider imposing SST on TCM, which was set to take effect in March.
He said TCM should be exempted from such taxes and warned that such a move would increase the cost of such medicines.
TCM covers Malay, Chinese, and Indian traditional medicine, as well as homoeopathy, chiropractic, osteopathy, and Islamic medicine.
MCA deputy secretary-general Dr Pamela Yong cautioned that imposing SST on TCM services would inevitably result in price increases, potentially giving rise to an underground market and unregistered TCM practitioners offering lower prices.
“The tax exemption is in line with the government’s effort to enhance the well-being of the people, as emphasised in the Madani Economic Framework,” Finance Minister II Datuk Seri Amir Hamzah Azizan said in a statement.
He said practitioners registered under the Traditional and Complementary Medicine Act 2016 [Act 775] would not be required to register with the Customs Department and would be exempted from the service tax.
These include Malay traditional medicine, Chinese traditional medicine, Indian traditional medicine, homeopathy, chiropractic, osteopathy, and Islamic medical practices.
“The decision, which was approved by Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, is a step towards improving the health, comfort, and overall well-being of the people.
“At the same time, the Madani Economic Framework will actively strengthen the TCM sector, which employs almost half of the workforce in Malaysia.
“The government acknowledges that there is a long way to go to expand the local TCM sector internationally.
“Therefore, these businesses need to rely on domestic demand for the self-sufficiency of their businesses for now, especially for TCM that provides services to Malaysians,” he added. – The Vibes, February 19, 2024
.jpg)
