KUALA LUMPUR: The number of GST zero-rated medicines will be doubled to 8,630 from 4,215 under Budget 2016, Prime Minister Datuk Seri Najib Razak announced today.
Najib said as part of improvements to the Goods and Services Tax (GST) system, all controlled medicines under groups A, B, C and D, as well as 95 additional over-the-counter medicines, will be zero-rated.
These, he said, include drugs used to treat a variety of ailments, including cancer, diabetes, high blood pressure and lung disease.
Other items to be declared zero-rated were baby formula and milk, including soy-based and organic milk, dhal, brown sugar, and mustard seeds.
Najib said the government has also suggested for the annual sales threshold to be lowered from RM100,000 to RM50,000 to ensure small-scale farmers will be able to benefit from the GST's Flat Rate Scheme.