Traditional and Complementary Medicine Will Be Exempted From SST

Traditional and Complementary Medicine Will Be Exempted From SST

A recent statement by the Ministry of Finance has announced that Traditional and Complementary Medicine (T&CM) services will not be subjected to the 8% sales and service tax (SST) starting from 1 March 2024.

The exemption of T&CM services from taxes is a move that was made to help improve accessibility to healthcare. With this decision, services provided by health or wellness centres, massage parlours, or similar establishments operated by registered T&CM practitioners under the Traditional and Complementary Medicine Act 2016 [Act 775] will not be categorised as taxable services.

According to reporting by The Star, Second Finance Minister Senator Datuk Seri Amir Hamzah Azizan said 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. 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,” he added.

It was also acknowledged that SMEs still have a ways to go before gaining international recognition and access to the global market. As such, these entrepreneurs must rely on domestic demand for their business survival, especially those SMEs offering services to Malaysians.

The Finance Ministry also mentioned that practitioners registered under the Traditional and Complementary Medicine Act 2016 (Act 775) will not have to register with the Customs Department.

Finally, the statement also says that 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.

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