DAP calls for university hospitals, teaching hospitals to be exempted from GST

PETALING JAYA: University hospitals and teaching hospitals should be exempted from having to pay the Goods and Services Tax (GST), said DAP’s Dr Ko Chung Sen.

"The teaching hospitals are funded by the Government under the Ministry of Education and considered part of the public services," said the Kampar MP.

"Government hospitals are not only exempted from the GST, they are able to claim back the GST on equipment, consumables and services purchased," he said at a press conference in Parliament Monday.

Most of the patients that are treated in the teaching hospitals, Dr Ko said, are from the lower income group.



"It is unfair to expect them to fork out more," he said.

Dr Ko gave an example of Hospital USM (HUSM) in Kubang Kerian, Kelantan which has no plans to charge patients GST in the hope that GST exemption will be granted to the medical campus as institutions of higher educations are exempted.

"I hereby urge the Minister of Education and the Royal Malaysian Customs to exempt university hospitals from GST as both healthcare and education institutions are for the good of the public," he said.

It was reported that all private hospitals and clinics registered under the Private Healthcare Facilities and Services Act are exempted from having to pay GST.

However, the teaching hospitals of universities, such as Pusat Perubatan University Malaya (PPUM), Pusat Perubatan University UKM (PPUKM) and HUSM, are not exempted and patients will be taxed at the standard rate.
 

Source: The Star Online , dated 06/04/2015