Deputy premier urges reconsideration of SST on chinese medicine

KUCHING: The federal government has been urged to reconsider their decision on the imposition of 8 percent Sales and Services Tax (SST) on those providing services in traditional Chinese medicine (TCM).

Deputy Premier Datuk Amar Dr Sim Kui Hian said the move may impose potential financial burden to the people.

“While western medicine is not subject to the 8 percent SST, (it) is only right for the TCM not to be subjected to the 8 percent SST.

“Thus, I will list this as one of the subjects to be discussed with the new Health Minister Datuk Seri Dr Dzulkefly Ahmad during a courtesy call on him soon,” he said in a Facebook post.

Dr Sim, who is also the Public Health, Housing and Local Government Minister said many Sarawakians and Malaysians are facing financial strain in managing their health expenses, especially concerning TCM and complementary medicines.

“Otherwise, all their healthcare will be an extra burden to the government unless the current 2 percent Gross Domestic Product (GDP) to minimum 5 percent GDP increases.

“With rapid ageing, the Malaysian Government and Malaysians will not even afford the current level of health care and services soon,” he said.

Citing his recent visit to Holland, a country with 17 million population, having much older population demographics than Malaysia, he said they had spent €80 billion a year on health care and another €30 billion on social care.

“With the country’s population of 33 million, and under the Malaysia 2024 budget, only RM393.8 billion is allocated. Malaysia will not be able to even maintain the current level of health care and services,” he said, while adding that unless there is healthcare reform soon.

Dr Sim said this is also one of the reasons why Sarawak should be given its healthcare autonomy.

“We can do better with current federal healthcare funding for Sarawak with a small population, complemented by the Sarawak government’s various initiatives,” he said.

Dr Sim stressed that TCM is integral to the healthcare system, globally and regionally, pointing out its potential effectiveness during the early stages of the COVID-19 pandemic.

He added despite training in providing western medicine services, he has also used TCM during his practice.

“In fact, TCM is part of my travelling medical bag,” said Dr Sim.

Recently, local daily China Press reported the Customs Department had sent out a letter to traditional Chinese medicine practitioners to ask that they pay service tax dating back to 2018.

TCM is categorised under the taxable service category of Nightclubs, Dance Halls, Cabarets, Health and Wellness Centres, Massage Parlours, Public Houses and Beer Houses.

The service tax is now at 6 percent but the government plans to increase it to 8 per cent effective March 1, 2024.