KUALA LUMPUR, 6 Nov: The cost of healthcare will increase with the implementation of the Goods and Services Tax (GST) despite the Minister of Health issuing a statement that says otherwise.
Member of Parliament for Petaling Jaya Utara, Tony Pua, said that the GST will still have an impact on consumers when the hospitals have to pay the GST for all their services and products purchased from suppliers.
“Without the GST, hospitals, for example, pay RM50 to suppliers and resell it to patients at RM55 for a profit of ten percent. With the GST, hospitals would need to pay suppliers an additional of 6 percent, thus making the cost RM53.
“It is impossible for hospitals to maintain the sale cost to consumers with a profit of only 3.8 percent, if it is sold for the same price of RM53,” said Tony Pua.
On Monday, Datuk Seri S.Subramaniam claimed that the implementation of the GST in 2015 will not increase the cost of healthcare because it is exempt from the GST.
“Suppose the hospital wants to maintain the ten percent profit in the previous example. Then the price would be RM58.30 (RM53 + RM5.40), which still causes consumers to pay the GST.
“Looks like BN should stop misleading the public and begin to come clean about the impact of the GST,” he added.
Therefore, he said, Pakatan Rakyat will continue to oppose the implementation of the GST, even more so in the country’s administration which is filled with leakages, corruption and cronyism.
“What’s even worse is that the GST is to be implemented when 80 percent of the people do not have enough income to pay the income tax,” said Tony Pua.