GST exemption on essential items eases consumers' burden - FOMCA

Exemption of the Goods and Services Tax (GST) on basic necessities such as medicines for chronic diseases and various food and culinary, reflects the government's concern for the people, said Federation of Malaysian Consumers Associations (FOMCA) vice-president, Mohd Yusof Abdul Rahman.

He said the decision can benefit consumers and FOMCA hopes the government will extend the rules for tax exemption.

FOMCA welcomes the addition to the list of zero-rated GST items announced by the government that benefits consumers because it can reduce costs.

"FOMCA hopes the government from time to time will refine the list of zero-rated essential items based on the feedback received from the people," he said when contacted by Bernama, here today.

Prime Minister Datuk Seri Najib Tun Razak when tabling Budget 2016 on Oct 23 announced a seven-step improvement of GST which will be in force by Jan 1, next year, which includes zero rate on medicines for 30 types of diseases and various types of food items, including infant formula and soybean-based milk and organic milk for children.

Malaysian Consumer and Family Economics Association (MACFEA) president, Prof Dr Laily Paim, said the announcement should be welcomed by all parties because it showed the government's concern in easing the burden of consumers, especially those in the low-income bracket.

"Hopefully, more goods and services will not be subjected to GST, especially basic necessities such as food, housing, education and transportation," she said.

Meanwhile, Annisah Shukri, 39, from Bukit Jalil, a mother of three small children, said she stands to benefit because her children cannot take cow's milk.

"I have children who are intolerant to cow's milk so I understand the burden of buying soya milk because the price is more expensive than cow's milk. Parents who have children with such a condition will not be so burdened now," she said.

Although there are subsidies for medicines, there are still people who can ill afford to buy them and this tax exemption to a certain extent would ease their burden, she added.

Farrah Fazilah Ab Mahat, 34, from Putrajaya, said that since many people who are suffering from chronic illnesses such as diabetes, hypertension and heart disease are dependent on drugs, the tax exemption definitely reflects the government's concern for the problems faced by the people.

"It is helpful, especially for those who are low-income earners and forced to pay higher prices because patients rely on medicines," she said.