KUCHING, Dec 31 — Sarawak United People’s Party (SUPP) Women chief Kho Teck Wan today urged the federal government to classify Chinese medicine services, chiropractic, and physiotherapy as essential services so they will not be subject to the sales and service tax (SST).

She claimed many were shocked to learn that the Chinese medicine services operators were told to pay backdated SST for the 2018 to 2023 assessment years by May 2024.

"These operators were not formally informed about the implementation of SST on their services,” Kho said in a statement.

She said she has also received feedback from operators of physiotherapy and chiropractic centres that they were told to pay the backdated SST and start collecting SST on their services on January 1 2024.

"With such short notice and no formal letter or public announcement from the government, these operators were caught by surprise of the backdated tax they needed to pay and stressed over the potential penalty that maybe imposed on them should they failed to pay the taxes,” Kho said.

She said she was made to understand that physiotherapists and chiropractors were only informed of the need to start collecting SST by January 1, 2024 about a month ago.

Kho claimed that some believed that the introduction of the Chinese medicines at the early stage of Covid-19 infection could help ease the effects and symptoms of Covid-19.

She further claimed that the Chinese medicine had played an important role in helping the overstretched and stressed public healthcare system during the Covid-19 pandemic.

"For many, the Chinese medicines and services are essential in maintaining a healthy lifestyle,” she said.

She said those who suffered several forms of injury or physical impairment depend on physiotherapy and chiropractic in making a full recovery.

"These services are not an option but a necessity for the patients to return to a normal and productive life.

"These medical services are important in reducing and preventing the increase of medical spending to both the patients and our nation,” Kho said.

She said as the country moves toward economic recovery, the backdated SST collection and increased tax rate on medical services could be detrimental to the affected practitioners and their patients.

"It is with great hope that I urge the government to reconsider the enforcement of backdated SST and implementation of SST on these medical services,” Kho said.

She also called on the federal government to publish a full list of services that are subject to the SST, with their effective implementation dates.

Under Budget 2024, the service tax would be increased from 6 to 8 per cent effective March 1, 2024, but will not include food-and-beverages and telecommunications.