The finance ministry is reviewing a proposal to exempt elderly care centres from the 8% service tax to ease the burden on vulnerable groups.
KUALA LUMPUR: The Ministry of Finance (MoF), together with the Ministry of Women, Family and Community Development (KPWKM), is conducting a further study on a proposal to exempt elderly care centres from the Sales and Service Tax (SST).
Deputy Finance Minister Liew Chin Tong (pic) said the study includes a review of the existing service tax to identify categories of care centres providing basic or premium services.
He said the move was important to ensure that the targeted eight per cent service tax would not adversely affect or burden vulnerable groups already facing a high cost of living.
“Any proposals for improvements from all stakeholders will also be taken into consideration before the study is finalised,” he said during the Dewan Rakyat Special Chamber session today.
He was responding to Lee Chuan How (PH-Ipoh Timor), who urged the government to exempt Malaysians from the eight per cent SST on elderly care services provided by care centres registered with the Social Welfare Department (JKM).
In raising the matter, Lee said the SST had placed an additional financial burden on ordinary families, as monthly fees of around RM2,500 meant they had to bear significantly higher costs.
Meanwhile, Liew assured that his ministry was prepared to conduct working visits to the affected care centres to assess the actual situation faced by operators.
He said the visits, to be undertaken together with KPWKM, would also include engagement sessions with operators to enable MoF to gain a more detailed understanding of the issues involved.
“I am prepared, together with my officers, to make visits with KPWKM concerning the elderly care sector. We will focus on resolving issues affecting the elderly before looking into other areas,” he said.
Meanwhile, Dewan Rakyat Deputy Speaker Datuk Dr Ramli Mohd Nor, when adjourning the session, said the Special Chamber sessions during the Second Meeting of the Fifth Session of the 15th Parliament had seen 63 motions tabled under Standing Order 17 over the 16-day sitting.
He said the motions involved debates and explanations from 18 ministries, as well as one ministerial briefing.
Ramli added that the sitting also provided opportunities for both government backbenchers and opposition Members of Parliament to chair the proceedings.
“This Special Chamber sitting also gave the opportunity to nine government backbenchers and three opposition members to chair the Special Chamber proceedings under Standing Order 16(3),” he said before adjourning the Special Chamber sitting sine die.
