KUALA LUMPUR - THE projected hike in the prices of non-essential medicine next year will not adversely impact the people as 2,900 brands of essential medicine will be exempted from the Goods and Services Tax (GST).
Federation of Malaysian Consumer Associations (Fomca) vice-president Mohd Yusof Abdul Rahman said this was also because not many people purchased non-essential drugs on a regular basis.
“The rakyat will not be affected by the increase since many essential medicine are GST-free. Besides, we also have alternative medicine,” he told the New Straits Times yesterday in response to the Malaysian Pharmaceutical Society’s statement that Malaysians could expect a minimal increase in the prices of medicine next year due to an increase in the cost of production.
Yusof said a hike in prices of essential medicine that are not exempted from GST would encourage the public to consume medication responsibly.
MPS president Datuk Nancy Ho said the increase was expected to range between two and three per cent after the implementation of GST on April 1 next year.
She said the new taxation system would affect the cost of production of medicine, which would result in companies adjusting the prices of their products accordingly.
“Usually there will be variables that may cause companies to review the prices of their goods. Price hikes vary from company to company. Some companies have not raised prices for 10 years.
“The increase could also be due to certain fluctuations, either in the exchange rate, an increase in the cost of raw materials or logistics, or renewed polices.” -NST
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