MCA has applauded the government’s decision to rescind the 8% Sales and Service Tax (SST) on traditional and complementary medicine (TCM) practitioners which was supposed to come into effect on March 1.
MCA deputy secretary-general Datuk Dr Pamela Yong said despite the government taking months to U-turn on its decision, the announcement made by Finance Minister II Datuk Seri Amir Hamzah Azizan nevertheless came as a relief for the Lunar New Year.
While MCA appreciates that the government took heed and adopted suggestions from MCA and other stakeholders, MCA hopes that such unnecessary angst-causing situations could be avoided in the future if the Madani government exercises (utmost due diligence in their decision-making),” Yong said in a statement on Tuesday (Feb 20).
She stated that according to data from the Health Ministry, a total of 6,888 TCM practitioners were registered as required by the law as of January 2024, with traditional Chinese medicine practitioners accounting for more than 4,000 or two-thirds.
“These figures suggest that the government’s initial intention would have affected a certain segment in society with taxes by a larger extent,” Yong added.
“Nevertheless, MCA still welcomes the government move to accede to public opinion. Simultaneously, MCA has repeatedly recommended to the government to reinstate the GST set at a new rate of 4%.”
Yong said the GST had, in the past, enhanced the country’s finances, increased the government’s revenue and enabled the provision of subsidies for daily essentials.
“The abolishment of the GST by the Pakatan Harapan (PH) government in 2018 resulted in a significant revenue shortfall as a recent article published by the Institute of Strategic Analysis and Policy Research (INSAP) highlighted that the GST generated a robust RM44 bil in 2017, contributing significantly to the national coffers,” she remarked.
“It has been estimated that had the GST not been abolished, GST would have collected around RM63.5 bil instead of RM 35.8 bil from SST in 2024.
“With data showing that the outdated SST tax system is ineffective in expanding the national revenue, this may explain why the government feels the need to introduce a slew of new taxes or raise the tax percentage to top up the treasury.”
In making the announcement on Monday (Feb 19), Amir Hamzah said the matter was decided after weighing the responses from various parties, including TCM practitioners.
He 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.
He also noted that the decision was agreed by Prime Minister Datuk Seri Anwar Ibrahim as this is a step to increase the health and comfort level of the people. – Feb 21, 2024
Main pic credit: Mudframes Pictures
