Friday, October 30, 2009

Credit Card Service Tax Maybe Absorbed by the Bank

I contacted UOB Bank and Standard Chartered to cancell my credit card, but they said that they have yet to receive official announcement from Bank Negara. They said that they will post via email on the latest updates.

I read The Star on 27th Oct'09 and it says that the banks might absorb the RM50 service Tax so that it would not loose all its customers. Currently, the banks are giving cash rebates on certain purchases i.e Giant, Petronas, Tesco and Secret Receipe. This rebates might be revoked so that, it would substantiate the service tax.

Furthermore, the bank will only bear the service tax if the user swipes the card on frequent manner i.e. 2-3 times per month or spend a minimum amount ( the bank not yet decide). Else, the bank will still charge you the RM50.

Looks like all my unused credit cards need to be cancelled as it is just sleeping at my home. These credit cards were given as complimentary although I didnt ask for it.

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