Service Tax over Credit Cards?
By gracefuldove
@gracefuldove (1668)
Malaysia
October 30, 2009 11:47pm CST
The Malaysian government imposed an RM50 service tax on all credit card shareholders hoping to raise RM400 million in 2010. This has angered banks, credit card marketing agencies and the credit card holders themselves. They believe there are other ways to raise revenue and by imposing this tax, it spells the breaking of their 'rice-bowls'. Their livelihood is imperiled.
Apart from this new tax, Malaysians holding credit cards have to pay yearly subscription fees.
Does your government imposed such tax on your card holders?
4 responses
@submerryn (1304)
• Malaysia
1 Nov 09
Hi gracefuldove,
I am not really affected by this new ruling as eventhough I have a couple of credit cards, I hardly use them. So I can easily resort to having them cancelled. My husband on the other hand is badly affected by this. He is holding more than ten credit cards. His job function requires him to have THAT many cards. Eventhough he is entitled to free annual subscription fees, the RM50 tax imposed on each card is not too kind to him. He may need to pay up to a thousand of ringgit just for that so called 'tax'. He may consider cancelling a few, but then again, each bank has their own advantages and as I've mentioned above, he really needs them for his work. I really hope the Government will reconsider this new ruling.
1 person likes this
@vingyan06 (2486)
• Malaysia
1 Nov 09
Hiya! I think I have missed this news ! Just now my hub only told me about this issue and lucky we both don't have that much of credit cards on hands. For me, I only have 2 credit cards. I use that to shop or dining outside. It is good to have at least one credit card so I don't need to carry too much cash going out and I don't need to go to the ATM machine to get my cash too often.
Your hub is holding 10 credit cards that is a lot! Hope our government will reconsider this new ruling, good luck to your hub!
@gracefuldove (1668)
• Malaysia
19 Nov 09
I think the 2010 Budget is really silly in a way. To depend on RM50 for per credit card and RM25 for per supplementary is a real low down tactic. I wonder who advised PM? Must be one kangkong fellow. Then there is the other-the real estate property tax which is designed to kill first time seller. How bad can a budget be? This bad, mind you!
@larish (2191)
• Philippines
28 Jan 10
Here in the Philippines, we don't have that kind of tax in credit card. I have three credit cards and the government hasn't done any rules about service tax on all credit cardholders. We just have the usual charges like service, finance charges for those cardholder who cannot pay in full on their due dates & penalty charges for those who miss to pay.
@cwong77 (2010)
• Malaysia
1 Nov 09
Frankly speaking, if the bank is unable to come out with an alternatives, I will be cancelling most of my cards leaving 1 or 2. I was given those cards for FREE, as I am being a loyal customer to them since many many years ago. I did not apply for the card, it came itself, so why must I be 'punish' by the Government.
The Government should increase the card application guidelines, and not imposing on those credit card holders just to generate income! and this will also kill those in this job! I don't see any more of those credit card promoters in mall nowadays since they know it will be just effortless.
I am foreseeing more and more ppl going jobless.. at least those credit card promoters will be the first ones.. 
@JamesKYTan (1605)
• Malaysia
31 Oct 09
I agree with you absolutely. There are ways of raising revenue. For example, impose extra import duties for luxury cars. Houses costing more than a million ringgit are subjected to 1% taxes, we can call it Opulent Tax. There are at least a million houses fetch more than a million ringgit. This will raise the revenue to at least
RM 10 billion. I won't think the PM will implement it as it will affect most of most MPs.
