T&CM exempted from SST, says Finance Ministry

PETALING JAYA: Traditional and Complementary Medicine (T&CM) will not be subject to the sales and service tax that was supposed to come into effect on March 1, says the Finance Ministry.

In a statement Monday (Feb 19), Second Finance Minister Senator Datuk Seri Amir Hamzah Azizan said this was decided after weighing the responses from various parties, including T&CM practitioners.

Amir Hamzah said that the exemption was an effort by the government to elevate the wellness of the people in line with the Madani Malaysia concept which part of the Madani Economy rakyat empowerment framework.

“The decision was agreed by the Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim as this is a step to increase the health and comfort level of the people.

“At the same time, the Madani Economy framework will continue to empower the small and medium enterprises (SMEs) which employ more than half of the labour in Malaysia.

“The government concedes that it is still far for the local SMEs to enter the global scene. Therefore, these entrepreneurs depend on the domestic demand for their business survival at this time - more so for those SMEs who offer their services to Malaysians,” said Amir Hamzah.

The Finance Ministry further stated that T&CM practitioners registered with the T&CM Act 2016 (Act 775) do not need to register with the Customs Department.

“The services which will be exempted from SST will be on traditional Malay medicines, Chinese traditional medicines, Indian traditional medicines, homeopathy, chiropractic medicines, osteopathic medicines and Islamic faith healing.

“The Finance Ministry agreed that the decision will be imposed from March 1 onwards on services provided by health and wellness centres which are run by T&CM practitioners who are registered under the Act 775 for the stated services,” said Amir Hamzah.

On Jan 6, The Star had published an article quoting T&CM practitioners questioning why they were not exempted from the 8% SST as should be when they are categorised and recognised by the Health Ministry for providing medical services.

The Malaysian Chinese Medical Association and Association of Malay Naturopathy Medicine Practitioners Malaysia had then stated that the government needs to provide further clarification on why their services were being taxed.

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