DAP S’wak leader urges Finance Ministry to reconsider SST on traditional medicine

Irene Chang

KUCHING, Jan 4: The imposition of Sales and Services Tax (SST) on traditional and complementary medicine (TCM) treatments, particularly an increase from 6 to 8 per cent in March 2024, should be reconsidered as it may discourage people from spending on well-being and healthcare needs that TCM medicine can meet.

In a statement released today, Irene Mary Chang Oi Ling, Sarawak Democratic Action Party (DAP) director of its political education bureau, called on the Federal Ministry of Finance (MOF) to reconsider its approach, even if the imposition only applies to medical services and not products provided by alternative medicine providers.

“I understand that with the huge current government debt, the Finance Ministry is eager to increase the government revenue in order to better provide for public services and infrastructure and other needs of the people.

“However, I call on the Finance Ministry to re-strategise this step as the government should give top priority to encourage people to spend more on their well-being and healthcare needs, in particular, to address the pandemic-related healthcare needs of the people which may be met through TCM medicine.

“With the imposition of SST and which is to be increased to 8 per cent in March 2024, this would deter many people from spending more on their well-being and healthcare needs,” she said.

The former Bukit Assek rep pointed out that TCM services are internationally recognised and certified, and that the global current trend is to integrate and combine TCM services with western and modern medicine.

“In Malaysia, TCM is a legitimate practice that is recognised by the Ministry of Health. Indeed, more and more hospitals in Malaysia, including our Sarawak General Hospital in Kuching and Hospital Likas in Sabah, are offering the practice of both western and TCM medicine alongside each other in some departments in their healthcare system.”

Chang noted that the government has been encouraging private TCM medical practitioners to register with the TCM Council since March 2021, and that beginning Feb 29, 2024, all of them will be required to register with the council before they can continue to practise.

“This is a clear recognition by the Ministry of Health of the importance of TCM medicine in ensuring the best healthcare delivery to Malaysians.”

Furthermore, she urged the MOF to collaborate with the Ministry of Health in order to avoid imposing SST on the delivery of TCM medicine, both in services and products.

“It should revisit the guidelines dated Sept 21, 2021 of the Customs Department to direct that the medical services and products offered by the registered TCM practitioners should be parked in the excluded list of Group C of Table 1, which provides for both the list of taxable services and the excluded list.

“Therefore, the excluded list should include any facilities registered under the Private Healthcare Facilities and Service Act 1998, any Government healthcare facilities, any facilities managed by any university established under the Universities and University College Act 1971 or Universiti Teknologi MARA Act 1976 for healthcare purpose, and any facilities registered under the TCM Council,” Chang added. — DayakDaily