It was table:
“To promote prudent spending, the government proposes a service tax of RM50 a year be imposed on each principal credit card and charge card including those issued free of charge. The government also proposes that a service tax of RM25 a year be imposed on each supplementary cards. This measure is effective from 1st January 2010.”
So do you think your bank will charge you or absorb it? It is estimated that there are a total of 11 million cards in the market plus 250,000 charge cards. This would mean a total revenue of approximately RM550 million for the government. Great!
Time to cut the plastic?
Would this help to promote prudent spending is still a question but it is for sure will increase personal or business expenses and increase government revenue.
In this century, most people cannot go around without a credit card. No matter how many plastic you cut, you still have to pay service charge for your card. Also for the peoples that owe card expenses, take up the 0% installment or take up the EPP scheme name by the unknown credit card consultant or company (modern Ah long) are forces to pay the service charge. For the company who provide business card to management team or the banks that absorb the service charge is additional expense too.
Is it time for credit card sales team and EPP consultants to change job?