October 31, 2009

Credit Cards-Just Use the Scissors!

If credit card issuing banks, marketing agencies for credit cards and card holders expects the government to buckle and withdraw the RM50 tax soon, think thrice!

As early as yesterday,30 October, PM Najib affirmatively said there will be no immediate plans to revise the RM50 annual service tax on credit and charge cards.

Najib said it was too soon to talk about any revision as the matter was just recently announced in the 2010 Budget.

“Tunggulah dulu (We wait first). The Government also needs revenue. If we can’t hike up (the price of) anything, susah kita (it would be hard for us).

“Who is going to fund the nation’s development?”

Najib announced the proposal to impose a service tax of RM50 for each main credit and charge card, and RM25 on supplementary cards in his 2010 Budget.

If implemented, financial analysts predicted that at least 30% of the holders of 11 million cards in circulation who have more than one card will have to pay RM100 every year.

It was reported in The Star yesterday that applications for new credit cards dropped by 80% following the Government’s an-nouncement of the service tax starting next year.

For those having more than two cards,review the cards in your possession and cancel them.

Looking for the scissors is the best bet yet!

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