These supplies comprised 320 chemical compounds that are subject to a zero rate.
“Health services per se are ‘GST exempt’ and the chemical compounds are zero-rated.
“Retailers and hospitals are eligible to claim back the GST (as output tax) but will not charge it to the consumer,” Minister Datuk Seri Dr S. Subramaniam told a press conference after launching the organ donation street campaign, “One Pledge with A Million Hopes” here yesterday.
He added that this could lead to an increase in overall price to cover the GST paid, clarifying the announcement made by Datuk Seri Najib Tun Razak when he presented Budget 2015 on Friday.
The Prime Minister stated 2,900 essential medicines would be exempted from the GST but did not specify the category.
Dr Subramaniam said herbs were not in the essential zero-rated GST drug list and discussions were still being held with the Finance Ministry on whether medical devices would also be zero-rated. “We are asking for most of them to be zero-rated. They are studying it and, in the near future, would decide which would be zero-rated,” said Dr Subramaniam.
He said emphasis had been given to cancer treatment and haemodialysis, adding that his ministry hoped for a transformation in the health services under the 11th Malaysia Plan.
He said about half of the ministry’s budget would go to paying the salaries of 260,000 employees.
/theSTAR 13-10-2014
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