No change to planned tax on credit cards, says Chor

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Wednesday December 16, 2009

 

PETALING JAYA: There is no change to the planned RM50 service tax for credit cards from next year, Deputy Finance Minister Datuk Chor Chee Heung said.

 

Chor said the RM25 tax for supplementary cards would also be imposed, despite reports stating otherwise.

 

“People keep asking me as there is news going around that the supplementary card tax will be abolished,” he said when contacted yesterday.

 

Chor added that some banks and finan­cial institutions were indirectly picking up the tab by offering certain promotions.

 

“If the banks want to keep their customers, they should offer to pay for their card-holders,” he said.

 

Meanwhile, Federation of Malaysian Consumers Associations secretary-general Muhammad Sha’ani Abdullah suggested that one charge be imposed per customer, regardless of the number of cards.

 

“We want to encourage prudent spending but at the same time, we do not want people to go further into debt.

 

“The banks should also do their part to absorb the cost, instead of expecting AKPK (Credit Management and Debt Management Agency) to do everything,” he added.

 

Several banks have posted notices on their websites, informing customers of the guidelines. Some also advised customers not to cancel their cards as they were still waiting for further clarification.