Expect A 1% To 2% Increase In Healthcare Costs After GST
Although healthcare services is exempted in GST, the costs of medical care is still expect to increase when the tax is implement next April.
By Mei Mei Chu — 05 Dec 2014, 01:26 PM — Updated almost 10 years ago
The Health Minister Has Confirmed That Medical Costs Could Possibly Increase By 1% To 2% After GST Comes Into Effect In April 2015
There is a possibility of an increase in the cost of medical care by between 1% and 2% when the Goods and Services Tax (GST) is implemented in April next year, said Health Minister Datuk Seri Dr S. Subramaniam.
thestar.com.myDuring The Tabling Of Budget 2015, The Government Revealed That Healthcare Services, Including 4,200 Brands Of Essential Medicine Would Be Exempted From The Tax
Any medical, dental, nursing, midwifery, allied health, pharmacy and ambulance services provided by healthcare professionals, hospitalisation, as well as screening, diagnosis, or treatment for those suffering from any disease, injury or disability of mind or body.
Exemptions are also given for services for preventive or promotive health purposes, for curing or alleviating any abnormal condition of the human body by the application of any apparatus, device or any other medical technology, and mortuary services.
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However, Datuk Seri Dr S. Subramaniam Now Say Some Medical Products Services Are Not Exempted Due To Technical Issues With The Customs Department
He said the health service was now being exempt from GST but there were certain technical issues that had been identified and highlighted to the Customs Department, which needed to be addressed. “For example, the services per se are GST-exempt, but the products used in the services are not.
thestar.com.myHe Revealed That Medication Was Never Meant To be Exempted From GST But A Compromise Was Made With The Customs Department For 320 Chemical Compounds To Be Under Zero Rate
Initially, he said, the Customs Department had said that medication would not be exempted from the tax. However, after further negotiations, “a compromise was reached so that 320 chemical compounds consisting of 4,200 brands are under zero rate.”
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As Such, The Ministry Is Looking For Ways To Reduce The Cost Of Medical Care
Dr Subramaniam added that the government was looking into ways to reduce the cost of medical care should prices increase after GST is implemented next April.
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“That is why we are asking that those products also be exempted from GST. Otherwise, the burden may be passed on to consumers in other forms.”
thestar.com.my“This is something which the medical groups are taking up, as well with those in charge of GST to make sure there will be minimal medical cost to the consumers,” he said after the ministry’s training institution graduation ceremony held at Kolej Sains Kesihatan Bersekutu Sultan Azlan Shah in Ulu Kinta yesterday.
thestar.com.myHe Reminded That The Health Ministry And Medical Associations Would Like For All Medications To Be Exempted, But The Decision Lies With The Customs Department
“Of course, we would like for all medications to be exempted from GST. Many medical-related associations are fighting for that, too. So we hope the Customs Department will make a decision because the ministry is not the deciding factor here.”
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