APHM: Govt should come clean on effect of GST on private hospitals

SERI KEMBANGAN: The government must come clean and inform the people whether the Goods and Services Tax (GST) will be imposed on doctors fees for consultation and procedures in private hospitals.

Association of Private Hospitals of Malaysia (APHM) president Datuk Dr. Jacob Thomas said this needs to be done soon to clear the air with stakeholders and the public confused over a new guideline from the Customs Department that indicates a GST of 6% would be imposed on hospital charges.

"The public would think that healthcare will not be subjected under GST, but actually it is (for private hospitals). This is very confusing," he told the Sun.

"It is either they announce the entire healthcare system as zero-rated, or they standard rate it, like what Singapore is doing where both private and public healthcare are taxed," he said.

On March 5, the Sun had reported that under a new guideline from the Customs Department, professional fees charged by doctors in private hospitals for consultation will be subjected to GST when it is implemented on April 1.

Jacob said there should be a bill separation between hospitals and doctors if the government insisted on charging GST.

"Therefore, the hospital's bill will be exempted from GST while the doctor's bill will include the 6%," he said.

Meanwhile, IHH Healthcare executive director Ahmad Shahizam Mohd Shariff said confusion among stakeholders and patients arose because of contradictory statements by the government that private hospitals will be subject to GST.

"When the Customs started to put together the draft documents for the GST, they shared it with the industry. They actually included private independent consultants into the list of exemption order.

"Somewhere along the line, they changed it, they took it out from the actual exemption order, and that caught the industry by surprise. That caused all the confusion among the stakeholders and patients," he added.

Shahizam earlier while speaking at the Healthcare Forum 2015 yesterday, however highlighted that fees charged by private hospitals in Malaysia are relatively cheaper compared to other countries.