KUALA LUMPUR: The government has announced its decision against imposing the sales and service tax on Traditional and Complementary Medicine (TCM).
In a statement, the Finance Ministry said the decision was made after taking into consideration feedback from various stakeholders and TCM practitioners.
It said practitioners registered under the Traditional and Complementary Medicine Act 2016 [Act 775] would not be required to register with the Customs Department and will be exempted from the service tax.
"TCM covers Malay, Chinese, and Indian traditional medicine, as well as homoeopathy, chiropractic, osteopathy, and Islamic medicine.
"The Finance Ministry also agrees that the decision applies to services provided by health or wellness centres, massage parlours, or similar establishments operated by registered PTK practitioners under Act 775 effective March 1.
Finance Minister II Datuk Seri Amir Hamzah Azizan in the statement said the tax exemption was in line with the government's effort to enhance the well-being of the people, as highlighted in the Madani Economy Framework.
"The decision approved by Prime Minister Datuk Seri Seri Anwar Ibrahim, who is also the Finance Minister, is a step towards improving the health, comfort, and well-being of the people.
"At the same time, the Madani Economic Framework will actively strengthen the TCM sector, which employs almost half of the workforce in Malaysia.
"The government acknowledges that there is a long way to go to expand the local TCM sector internationally.
"Therefore, these entrepreneurs need to rely on domestic demand for the self-sufficiency of their businesses at this time, especially for TCM that provides services to the Malaysians," he said.