100% tax relief to boost health tourism

KUALA LUMPUR: Private hospitals involved in the healthcare tourism industry will be given 100% tax exemption for several initiatives that they take up. Health Minister Datuk Seri Liow Tiong Lai said these included the construction of new hospitals and for the expansion, modernisation and refurbishment of existing ones. He added that the Government was finalising the provision for tax exemption equivalent to 100% of qualifying capital expenditure. Liow announced this at a press conference after opening HSC Medical Centre here yesterday.

The Government has also made provisions for expenses incurred by private hospitals to obtain domestic or internationally recognised accreditation to be eligible for double deduction incentive under the Income Tax Act 1967. The accreditation includes those conferred by the Malaysian Society for Quality in Health or Joint Commission International.

Liow said 400,000 health tourists visited Malaysia last year and the industry was expected to attract 40,000 more this year. “Last year, the industry generated RM380mil in revenue and the amount is expected to increase by at least 10% to RM430mil,” he said.

On another matter, Liow said chocolate manufacturers still have a big market although the item is banned in school canteens. He said the ministry did not prohibit the sale of chocolates in the country. “We only disallow it from being sold in school canteens to promote a healthy diet among students and teachers,” he said. He said other food, including ice cream and carbonated drinks, which were considered to be too sweet were also not allowed in school canteens. He said the ministry was still finalising the guidelines for food that can be sold in school canteens.

Liow was responding to calls by the Malaysian Handmade Chocolate Entrepreneurs Association for the ministry to review the ban on the selling of chocolate in schools and the classification of chocolate as un-healthy food. Association deputy president Muzairee Daud said it would continue to oppose the proposed guidelines until it obtained facts and evidence that chocolates caused obesity. He said the ministry might have confused chocolates with confectionery, which contain high amount of fat. “We welcome any possible cooperation between us and the ministry to clarify what is suitable for children's consumption and what is not,” said Muzairee. He added that even though chocolate entrepreneurs could still market their products the ban may cause students to misunderstand that chocolate was bad for health.

-thestar online.