KUALA LUMPUR, Dec 29 — MCA president Datuk Seri Wee Ka Siong has today called on Putrajaya to not discriminate against the practice of traditional medicine and complementary health services (TCM) such as traditional Chinese medicine.

Amid uncertainty that its practitioners may have to pay backlog sales and service tax (SST) since 2018, the Ayer Hitam MP said any type of medical treatment has the same objective which is to take care of people’s health.

"Each of our policies must be clear. Be it TCM treatment or modern medicine, it still has the same objective which is to take care of people’s health. We need to be consistent and not discriminate against any type of medical treatment including TCM.

"People’s health is our priority. I hope the government will continue to give SST exemption for traditional and complementary medicine, just as the exemption is given for modern medicine,” he said in a statement here.

Local daily China Press reported that the Customs Department has written to traditional Chinese medicine practitioners to ask that they pay service tax dating back to 2018 — which was when the sales and service tax (SST) regime was revived to replace the now-abolished Goods and Service Tax (GST).

Industry players were said to understand that the service tax is to be imposed for complementary services used to treat patients under traditional Chinese medicine, such as acupuncture, Tui Na, cupping therapy, and Gua Sha.

The service tax in Malaysia is currently 6 per cent, but the government has proposed under Budget 2024 to raise the service tax to 8 per cent on March 1, 2024 for all taxable services (except for food and beverage, telecommunication services, vehicle parking space services and logistic services).

Wee warned that the government’s image will be tarnished if even those offering medical treatments, massages and physiotherapy are subjected to the 8 per cent rate next year.

"Is it practical? The question is, if TCM practitioners have never collected six per cent SST before, can they claim it back from their clients ‘retrospectively’ for services that have been provided from 2018 to 2023?” he asked.

Wee pointed to Section 37 of the professional services guidelines dated September 21, 2021 and issued by the Customs Department which he said exempts the SST on medical and surgical services performed on humans and animals by medical practitioners in private clinics and specialist clinics, including consultation services by medical practitioners.

"As we all know, the current trend is to integrate or combine TCM services with modern medicine. It is certified internationally,” Wee said.

"The Traditional and Complementary Medicine Act 1976 has been amended and enforced. In the Malaysian context, TCM includes traditional Malay, Chinese and Indian (or Ayurveda) medicine. However, patients who receive TCM are from various racial groups and lately, many Malay patients are also receiving Chinese traditional medical treatment.”