8% tax on TCM will encourage underground practices and quacks, says MCA

KOTA KINABALU: The introduction of an 8% tax on traditional and complementary medicine (TCM) services would encourage underground practices and quacks, says Dr Pamela Yong (pic).

The MCA deputy secretary-general said the new tax would adversely affect its integration into general healthy living.

She said in a move to increase coffers and revenue, it seems that the unity government has lost sight of its obligation to the people.

“The recent and sudden introduction of an 8% tax on TCM services shows that the government is prioritising wealth over health and wellbeing of the people,” she said on Friday (Dec 29).

Her concerns on this matter came following reports that TCM and massage as well as physiotherapy services will be imposed the 6% Sales and Services Tax (SST) according to the current rate and then increase to 8% from March next year.

The reports stated that the government also gave these service operators until May 2024 to pay all unpaid SST taxes from 2018.

Yong said in the post-Covid-19 era and with the current surge of cases, the top priority was to expand spending on healthcare to address the pandemic-related needs of the people.

However, she said Malaysia chose to impose new taxes on the people who were seeking better health and well-being.

She said TCM services are recognised in Malaysia.

“Since 2016, it has been formally regulated under the Health Ministry. The registration of TCM practitioners has paved the way for its integration into the mainstream healthcare system.

“Hence, it is incoherent as to why the government decided to impose an 8% tax on TCM services which would include traditional Malay, traditional Chinese and traditional Indian or Ayurvedic medicine as well as homoeopathic, chiropractic and even Islamic medical practice,” she said.

Yong also said the new 8% tax would invariably increase prices, and encourage the emergence of an “underground” and alternative unregistered “quack” TCM practitioners.

“These underground practitioners offer lower prices and would jeopardise the safety, health and general well-being of patients trying to seek affordable cheaper treatment,” she said.

In view that the new 8% tax comes under the purview of the Finance Ministry, Yong said both the Finance Minister and his newly minted Deputy Minister (Lim Hui Ying) should provide clarifications and justifications for the move.

“This sudden announcement nearing the new year has dampened the spirits of legitimate TCM and registered practitioners and their patients,” she said.