Parti Sosialis Malaysia (PSM) exco member and Sungai Siput MP Dr Michael Jeyakumar has urged consumer associations to look into the price hike of healthcare in the private sector, due to the implementation of the goods and services tax (GST) on April 1.

 

Speaking to Malaysiakini yesterday, he was responding to a statement made by Association of Private Hospitals of Malaysia (AHPM) president Dr Jacob Thomas.

 

Jacob had said that costs for private healthcare will go up after the government rolls out the GST.

 

This is because private doctors are considered by the Customs Department as ‘outsourced services’ and their services will be charged with a tax of six percent.

 

Jacob added that the AHPM had explained to the Customs Department that almost all private doctors are independent consultants who have very close working relationships with the private hospitals. They are therefore not “outsourced services” as the services are provided by both parties. However Customs has not revised its policy.

 

“The consumer associations should look into this matter closely. Even though the government is exempting a few items including medical products from GST, it will still be a factor in the costs,”  Jeyakumar ( left ) said.

 

He added that PSM has also been urging the government to postpone the GST as a recession is about to hit the country.

 

Meanwhile, Federation of Malaysian Consumers Associations (Fomca) president Marimuthu Nadason said that the government should look to exempt healthcare wholly from GST.

 

He added that the government cannot compromise on healthcare as it was part of the essential services that people expected the government to provide.

 

“We elect the government for security, food security, healthcare and education. If they cannot compromise on something like healthcare, it is better to privatise Parliament then,” Marimuthu told Malaysiakini yesterday.

 

Previously, Health Minister Dr S Subramaniam and Deputy Finance Minister Ahmad Maslan had said that there would be no increase in private healthcare after GST is implemented as it is part of the GST-exempt category.