Tuesday, December 1, 2009

Credit card service tax from the GOVERNMENT .

well , as you all might already know , even some already made their move to cancel their credit card due to the RM 50 ( Principal ) and RM 25 ( Supplementary ) effective on 1st Jan 2010

well , i'm a credit card holder as well , and i have more than 1 bank credit card and i was wondering if there would be a miracle or changes so that i don't need to pay for the charges , so i go around and see what info i can get and this is what i get from HSBC bank :

The recent 2010 Budget announcement on the imposition of a service tax of RM50 and RM25 for each principal and a supplementary credit card respectively has caused much uncertainty amongst credit cardholders in Malaysia. This has led to certain credit cardholders deciding to cancel their credit cards

Before you decide on your next course of action, you may wish to retain your HSBC credit card for the following reasons:

a) the service tax is only effective from 1 January 2010, hence, there is no need to rush into a decision now;
b) we are currently awaiting further clarification and guidance from the relevant authorities. Once we have a better understanding on the impact of the service tax, we will send a communication to advise all our valued credit cardholders accordingly; and
c) you can continue to enjoy our year-round SmartPrivileges, attractive rewards and conveniences as a HSBC credit cardholder

Click here to read more HSBC

well , HSBC is saying , NO , don't runaway 1st ... there might ( MIGHT ONLY ) got miracle .

then , from UOB

Hope this can help abit to clear out most of the questions :

What is this Credit Card Annual Service Tax?
In the 2010 Budget announcement , the Government proposed to impose an annual
Service Tax of RM50 for all Principal Credit Cards & Charge Cards and RM25 for
Supplementary Cards effective 1 January 2010. The objective of this proposal is to
promote prudent spending to all Credit Cards and Charge Cards users.

Will I be charged for this Service Tax?
The Service Tax is applicable to all Malaysian Credit Cards after 1 January 2010.

Can UOB waive this Service Tax?
Since this is a Government Service Tax, banks are not allowed to waive it. However,
cardmembers are encouraged to use their UNIRinggit Rewards Points or Smart$
Cash Rebates to pay for the Service Tax.

I have 2 Cards. Will I be charged twice for this fee? Per card or per customer?
The 2010 Budget proposed imposition of an annual Service Tax of RM50 per
Principal Card and RM25 for every Supplementary Card.

I am currently being charged annual fee. Will I also be charged for this fee?
The Service Tax is a fee imposed by the Government while the Annual Fee is
charged by the bank.

I have a cancelled card with outstanding balance. Will I still be charged for the
Service Tax?
No, UOB will not charge you with the Service Tax when your cancelled card with
outstanding balance crosses into the next card anniversary date i.e. when the Service
Tax is due.

How will the Service Tax be imposed? Via card statement or pay to LHDN?
The Service Tax will be debited into your Card Statement and UOB will then forward
the Service Tax to the government.

Is this a confirmed Service Tax or only a proposal by the government?
The Service Tax was proposed in the Budget 2010 and is scheduled to be gazetted
in Parliament before 1 January 2010.

Click here to view the original file OUB

Just wondering , did the GOVERNMENT SAID NO to BANK WHO WANT TO PAY for their cardholder ?! Hmmm ...... UNIRinggit Reward is also banks money and reward what ?! So why can't bank make a LOYAL CUSTOMER REWARD as usual to waive the Tax ? Same things been done to those who keep their card active , so that the ANNUAL FEES is Waive .

Well , basically i do agree with what HSBC said , so i will continue use till the end of the month , and if there is no good news then i guess i'll cancel all except one .... just keep one should be enough . so there goes all my credits ........

Actually , having alot of card for me means , easy on credit to be use , using card you no need to walk to counter to pay for fuel , no need to line up to buy movie tickets , easy when travel , easy on hotel room booking , no need to go out with alot of cash especially when you go out shopping or clubbing plus there might be something we like to get during windows shopping and at that time we might lack of cash and then card can be put to good use . Plus , each different bank and credit card comes with different promotion , discount and stuff . As even 1 single bank can have more than 5-10 different cards . So i guess is actually easier if the government can make all bank credit card have the same exact promotion and im 100% sure everyone will only need one card .
That only can show that it is really SATU MALAYSIA , SATU KAD . :P


  1. I doubt the government will budge from their stand of wanting to impose the tax. Anyway, by the middle of December, I'll be cancelling all my credit cards, better be safe rather than kena charged for the tax. Anyway, with my rate of spending, even with the cash rebate I receive (0.5% to 0.7% for Alliance Bank's Younique card, or even 2% petrol rebate for Petronas-CIMB card) cannot at all cover or even-up the RM50 tax per card! So I'm cancelling off everything! What to do!

  2. Alice : thanks for viewing my blog , well , perhaps the bank MIGHT absorb it ..... but what the heck , im planning to wait till end of this month to cancel it and leave 1 card on hand , just incase i need it :P
    P/S : wow , u sure got alot of blogs ... :)