All the private hospitals and clinics registered under the Private Healthcare Facilities and Services Act (PHFSA) were exempted from the Goods and Services Tax (GST) implemented nationwide last week. Unfortunately, the teaching hospitals of the universities, Pusat Perubatan Univesiti Malaya (PPUM), Pusat Perubatan Univesiti UKM (PPUKM) and Hospital USM (HUSM) are not exempted and the patients treated there will be taxed at the standard rate.
It is inconsistent of the government to tax the poor patients at teaching hospitals. The teaching hospitals are funded by the government under the Ministry of Education and considered part of the public services. The government hospitals are not only exempted from the GST, they are able to claim back the GST on equipments, consumables and services purchased. Most of the patients treated in the teaching hospitals are similarly from the lower income groups and it is unfair to expect them to fork out more. This is especially the case for HUSM in Kubang Kerian, Kelantan which has no plans to charge patients GST. Its vice-chancellor, Professor Datuk Dr. Omar Osman, is hoping 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 Malaysia Customs to exempt the university hospitals from GST as both healthcare and education institutions for the goods of the public.