As we can see, the number of credit cards usage had been increased since year 1997. At the same time, the number of people get into debt also been increased. Our government had responded to that issue and proposes that principal credit card service tax of RM50 per year and supplementary credit card service tax of RM25 per year be imposed in order to encourage our citizen to have prudent spending. It will be effective from 1st January 2010.
Many people are not happy with that suggestion. This is bad news for those who own multiple credit cards and it is advisable to do cancellation of their card so that they won’t be taxed next year. Just imagine how crazy of our government: RM50 (service tax) + RM50 (annual fee usually more than that amount), this is only for single card. If you have more, the amount will be crazy!
However, this service tax will not be imposed immediately on January 2010 for all credit cards. For those existing credit card holders and their renewal date is at the end of the years. Then, they still got time to enjoy benefits.
Drawback of Imposing Service Charge on Credit Card
I think our government should think this issue in overall perspective. This is because not everyone owning a credit card is irresponsible in spending. I own credit card is because I need more convenient while doing any kind of transaction, plus it’s not safe to bring large amount of cash nowadays. I myself always pay my bill on time; never owe a single cent to bank.
I have 1 friend named Mr. Yeap who selling PDA phone at Queensbay Mall now having big problem since he tend to use his credit card to get more cash flow to fund in business that may help him to maintain the business but now with such thing, he will face some trouble.
Besides that, this will subsequently create jobless market since all credit card promoters who rely much on credit card job as their main income source. Do you think now still have anyone wants to sign up?
I definitely don’t agree with this RM50 tax. Maybe they should only charge those with more than 2 cards. It’s not fair for those with only one card.
now every one potong…
Brilliant idea, what a smart budget plan !!
Thus, I’ve decided to cut off my CC.
Thank you.
I cut 6 out of 8 credit cards that I have.
What’s a crap! The govt said that they collect RM50 to ensure prudent spending.
It looks more like the govt is running out of money and use every possible scheme to dig more money from us. If they really care for the rakyat, they”ll only make 2nd or 3rd credit cards taxible. In these days and age, credit card is not a luxury; it is just a necessity.
If u can hold a credit card…u should manage to pay the tax or whatever service charge..and most cc card holder owe debt
It’s not whether I can afford to pay or not. It a matter of value. What’s the benefits we get from the tax on the credit cards? What is the value?
@Leocw: For Malaysia citizen, there will not have any benefits on credit card tax that imposed by government. We need to be more disciplined and well-trained when using credit card, this is to ensure we won’t fall into debt.
That is a question of all credit cards handler. taxes on credit cards where should go? Do we have a benefits on it? or only companies and governments enjoying every tax on our every purchase.