Tax exemption for traditional and complementary medicine services a relief for patients

PETALING JAYA: Consumers can heave a sigh of relief as Traditional and Complementary Medicine (T&CM) services will now be exempted from the 8% Sales and Service Tax (SST) from March 1, a U-turn from what was previously gazetted.

This reversal by the Finance Ministry reflects a consideration for the well-being of the people, prioritising healthcare accessibility, said Second Finance Minister Senator Datuk Seri Amir Hamzah Azizan.

He added that this exemption aligns with the Madani Malaysia concept, which is part of the Madani Economy Rakyat empowerment framework.

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

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

“The government has acknowledged that SMEs still have a journey ahead before they can enter the global market.

“Therefore, these entrepreneurs rely on domestic demand for their business survival, especially those SMEs offering services to Malaysians,” said Amir Hamzah in a statement.

The Finance Ministry further stated that practitioners registered under the Traditional and Complementary Medicine 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,” he said.

On Jan 6, The Star had published an article quoting T&CM practitioners questioning why they were not exempted from the 8% SST as 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.

“If the modern medicine field can be exempted, then why do our clients have to pay taxes for T&CM treatments?

“We definitely need more clarification on this,” Malaysian Chinese Medical Association President Dr Heng Aik Teng had queried.

The Association of Malay Naturopathy Medicine Practitioners Malaysia pointed out that T&CM practitioners undergo procedures similar to modern medicine practitioners, including registering with the T&CM Council, renewing their Annual Practice Certificate, having qualifications that are recognised, and complying with Act 775.