Maybank Announcement On Credit Card and Charge Card Service Tax

Maybank had issued a statement to its' credit card holders related to the recent announcement of the annual RM50 service charge on each principal credit card and RM25 on each supplementary card.

Maybank urged the credit card holders not to take any action now as Maybank is obtaining further guidelines from the authorities on this matter. Besides the annual service tax is only take effect from 1 January 2010 onwards.

With this statement from Maybank, it is believed that other credit card issuers are seeking on the details of the credit card service tax issue as well. Definitely there will have some counter measures by all the credit card issuers

Based on the recent Budget 2010 announcement, it seems that the RM 50 or RM 25 service tax is applicable to the new credit card holders and during the time the exiting credit cards renewal date from 1 January 2010 onwards. The service tax will not imposed immediately on January 2010 for all credit cards or charge cards.

Hence, if you are an existing credit card holders and your renewal date is at the end of the years. It is best that retaining the credit cards and enjoy the provided privileges. Wait till next year renewal date only decide on whether to continue using the credit cards by judging whether it is worth to pay the service tax.

Do make sure that the prudent use of the credit cards and do not over spend beyond your affordability by using the credit cards. Credit cards facility supposed to provide convenience to the card holders and definitely you do not want to be the "Credit Card Loan Holder" that pay only minimum amount every month.

If the credit card holders facing the problem of paying back the credit card bills, it is better to stop using the credit cards till the time you are able to payback in full every month in order to avoid the high interest charges.