A sound of relief for many Traditional and Complementary Medicine (T&CM) as the Malaysian government has announced that in a statement Monday (Feb 19) that T&CM practitioners will not be subject to the sales and service tax that was supposed to come into effect on 1 March 2024, the ministry said this after weighing the responses from various parties, including T&CM practitioners.
The service tax exemption for T&CM is an effort to improve the welfare of the people as emphasized in the MADANI Malaysia Concept and applied the MADANI economic framework Empowering the People. The exempted services include services provided by health or wellness centers, massage parlors or similar places operated by T&CM practitioners registered with the Traditional and Complimentary Medicine Act 2016.
For the following businesses which is registered with the Traditional and Complimentary Medicine Act 2016 are not required to registered with the Royal Customs of Malaysia and shall not be subject to Sales and Services Tax (SST):
- Malay traditional practitioner
- Chinese traditional practitioner
- Indian traditional practitioner
- Homeopathy
- Chiropractic
- Osteopathy
- Islamic medical practice
The Ministry of Finance also agreed that the decision should apply to services provided by health or wellness centers, massage parlors or similar places operated by T&CM practitioners registered with above mentioned Act for the above services for the period before 1 March 2024.