The price of Chinese traditional medicine is expected to continue fluctuating with the imposition of Goods and Services Tax (GST) as such items depend on the rate of foreign exchange.

Checks by Bernama at pharmacies and traditional medicine shops in the Klang Valley found traders have started to display new price tags for the array of medicines subject to GST at their premises.

A Chinese traditional medicine shop operator in Seri Gombak, Chong Yii, 43, said most of the medicines sold in the shop were imported from China, and their prices depended on the rate of foreign currency.

"If the Yuan appreciates, then our prices will increase and falls if it is the other way round.

"Unlike modern medicine prices of which have been fixed after GST, our medicine may rise and fall depending on the market in China," he told Bernama.

A part-time employee of a pharmacy in the federal capital, Michael Tan, 21, said the shop only displayed a specific list of medicine which are exempted from GST.

"For example, cough syrup and panadol, are exempted from GST.

"But we have to refer to the latest price list on GST each time a customer pays up at the counter as many customers are still confused with our labeling at the rack and the receipts issued," he said.

However, despite the confusion among traders and customers at pharmacies and medicine shops after the imposition of GST today, price labelling has not been fully carried out.

A sales personnel at another pharmacy, Maslina Ahmad, 30, said even though they have separated stocks with GST and those without, it was still confusing with a new list sent by the supplier.

"A week before GST implementation, we obtained several updated lists of goods and it was very confusing as it kept on changing.

"We do not use the cash register as it has not been updated and we were forced to use hand written receipts for customers," she said.

A housewife, Azielina Amir, 32, said pharmacies have implemented GST prices even though the items on the rack had not been labelled as such.

"When a receipt is issued, we have to ask the sales personnel how GST was calculated and also some premises issued receipts which do not show GST even though GST was imposed," she said.

More than 4,000 types of medicines have been exempted from GST. Malaysia's move to implement GST today, should be seen as an important tax reform which would strengthen the country's economic after taking the interest of the people.

At six percent, Malaysia's GST is the lowest is ASEAN and the government is targeting to collect revenue from GST for development and social infrastructure.

For all the latest news and perspectives on GST click here.