The Ministry of Finance in a statement today (Feb 19) has announced Traditional and Complementary Medicine (T&CM) service will not be subjected to service tax.
This decision followed the directive, ensuring that services provided by health or wellness centers, massage parlors, or similar establishments operated by registered T&CM practitioners under the Traditional and Complementary Medicine Act 2016 [Act 775] will not be categorised as taxable services effective March 1, 2024.
MOF said after considering holistic feedback from various stakeholder, it made the aiming to enhance the well-being of citizens in line with the Malaysia MADANI concept and the Economic MADANI Framework: Empowering the People.
Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, said that exempting service tax for T&CM services is a step towards improving personal health, comfort, and well-being. He emphasised that the Economic MADANI Framework will also empower the T&CM sector, which employs nearly half of Malaysia’s workforce.
The government acknowledged the need to further expand the presence of local T&CM businesses internationally, underscoring the importance of domestic demand for the sustainability of these businesses, especially those providing services to Malaysian citizens.
T&CM practitioners registered under Act 775 will not need to register with the Royal Malaysian Customs Department and will not be subject to service tax for the following services: Malay Traditional Medicine, Chinese Traditional Medicine, Indian Traditional Medicine, Homeopathy, Chiropractic, Osteopathy, and Islamic Medical Practices.
The Ministry of Finance also agreed that this decision will apply to services provided by health or wellness centers, massage parlors, or similar establishments operated by registered T&CM practitioners under Act 775 for the period before March 1, 2024.
