PUTRAJAYA: The cost of healthcare in the country will see minimal increase following the implementation of Goods and Services Tax (GST) in April next year.
Customs director-general Datuk Seri Khazali Ahmad said media reports stating that the healthcare cost would increase by five per cent due to GST were not true, adding that it had caused confusion among patients and consumers.
“The cost of healthcare is expected to be minimally raised by one to two per cent,” he said when commenting on reports that quoted the Private Healthcare Association as saying that the cost would increase by five per cent after the implementation of GST.
He said under the Service Tax Act, a six per cent tax was imposed by private hospitals for lodging and meals. However, the tax will be abolished with the implementation of GST.
“Lodging costs between 10 and 30 per cent of the total expenditure incurred by in-house patients. The savings must be channelled back to the patients.”