MCA against SST on traditional medicine services, seeks govt explanation

 

The customs department says certain TCM services are subject to SST, which will be raised from 6% to 8% next March.

PETALING JAYA: An MCA leader has urged the government to explain its decision to impose 8% sales and service tax (SST) on traditional and complementary medicine (TCM) services starting March 1, 2024.

The party’s deputy secretary-general, Dr Pamela Yong, said the finance ministry must explain why the tax is being imposed on TCM services.

In a statement, Yong said the move was perplexing since TCM includes traditional Malay, Indian or Ayurvedic medicine, along with homeopathic, chiropractic and Islamic medical practices.

She said the top priority of other countries in transitioning to the endemic phase of the Covid-19 pandemic, with the recent surge in cases, has been to increase spending on healthcare to address the pandemic-related needs of the people.

“However, the unity government has chosen to impose higher taxes on the people who are seeking better health and well-being.

“In a drive by the government to increase its coffers and revenue, it seems the unity government has lost sight of its obligation to the common people,” she said.

Yesterday, China Press reported that TCM providers were shocked after they received letters from the customs department notifying them of a retrospective imposition of 6% SST on TCM services from 2018.

The services that are taxable include massages, acupuncture, cupping and scraping. However, medical consultations and prescription of medicine are exempted.

Malaysian Traditional Chinese Medicine Association president Xing Yi Teng was quoted as saying that they are still waiting for clarification from the health ministry and the customs department on services that are subjected to the SST.

The current SST rate of 6% will be increased to 8% from March.

“The ministry, however, has expressed its willingness to assist us and will invite customs officials to conduct an engagement session with TCM practitioners for further explanation on the tax implications,” said Xing.

It is understood that the customs department has agreed to grant the TCM service providers a grace period until May next year to pay up the accrued SST, without any penalties.

Yong warned that the imposition of 8% SST on TCM services would inevitably result in price increases, potentially giving rise to an underground market and unregistered “quack” TCM practitioners offering lower prices. - FMT