No subsidy for RM50 service tax

Almost all credit card issuers revealed that they would not subsidise the RM50 service tax for credit card that came into effect on Jan 1 this year. With the exception of Bank Kerjasama Rakyat Malaysia, which unconditionally subsidises the service tax, all credit card issuers impose specific conditions upon customers in order to offset the amount. (see graphic)

Most credit card issuers allow the amount to be offset with the cardholders’ reward points earned. However, the amount of points required to offset the RM50 is usually lower than a department store shopping voucher redemption of similar value.
Another mechanism offered is a RM50 cash rebate specifically tackling the service tax amount. It requires cardholders to utilise their cards – usually with a minimum value on transactions – to be entitled to the rebate.
In principle, the service tax is to be paid by cardholder, who may also utilise reward points earned from using the card for the purpose.
Many credit cardholders have already started cancelling their surplus credit cards. So, if we have more than one card, we have to decide what to snip and what to keep based on the best cash rebate and reward point deals. For the time being, I just stick to my Maybank credit card. One is enough especially during this economic downturn.

11 thoughts on “No subsidy for RM50 service tax

  1. I used to have one credit card too. After using it for almost a year, I decided to cancel and since then I've never use another.

  2. Currently I holding 5 cards.. Three were surrender to issuer on last December…

    I was thinking to terminate another 2 cards; after the outstanding have paid all!
    huhuhuhu

  3. salam,

    tahun lepas IP ade 4 kredit kad. Ade bank offer smpai 12 ribu kredit limit. Kalo tk control berbelanje susah idup nanti. Tapi tahun ni IP pkai satu je itupun buat bayar kat stesen minyak je

  4. this condition was announced by the Gov during last budget. seem that the Gov has no money to run the country or ???

    i believe that many of us hold more than 1 card including myself and how suffer are we to bare the additional cost..how many income that the Gov may earn from this alone…

    or maybe the Gov wants us to be more prudent over spending by using credit card to avoid many of us being declare as a bankrupt..

  5. Bravo! Maza. After this u should consider using debit cards instead. By doing this, u will think thrice before deciding to purchase something.

  6. wow! had kredit rm12k. ni mesti gaji IP beribu2 lemon kot? sy guna kad kredit utk isi minyak n byr bil utiliti je spt astro, TNB and broadband. senang..autopay maybank. dah lama x beratur di pej pos. jimat masa, duit n tenaga.

  7. Bro Nadri, I think the present gov is cash-strapped. That's why Najib came up with this policy at the expense of his brother, who owns CIMB Group. Yes, BN has little money to run country. For example, the grant worth RM1 billion allocated to the Ministry of Education has been cancelled. So, there is no more course for teachers, unless it's extremely important.

  8. hehhehehe

    maza suka simpan credit card jer..
    ada mcm2 warna gitew..

    bila nak pakai..
    alahaiii.. takutttt.. hehehehhe

    Boleh pinjam, tapi bunga kasi 50% lorrr (heeh lagi ganas dari ah long).. wakakakakka

  9. buat koleksi ke? koleksi tu x mendatangkan untung. sbb setiap satu keping Najib charge RM50. baik potong8X. kalau maza jadi along sure org kecut perut sbb body maza ni mcm gergasi. terus org lari ..hehhehe…

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