DISCOVER the Road to Financial FREEDOM!

There should be NO Rush to cancel your Credit Cards before 1st January 2010 as RM50 service tax for principal credit and charge cards and a RM25 for supplementary cards would be imposed on the anniversary date of Credit Cards.

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How to Check Anniversary date of  the Credit Cards?

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Just take out your Credit Cards and look at “valid thru” date on your card for the renewal anniversary.

For example, if your “valid thru”date is 10/12, the annual Service Tax will be charged in October 2010 and every October thereafter.

*** For newly approved Cardmember after January 2010, the Service Tax will be charged to your account the same month the card is issued.

It would be best to double check the Credit Cards anniversary date by calling the Banks as some of the “valid thru”date may be different.

Anyway, I have cancel my Hong Leong Bank and OCBC Bank Credit Cards so far.

All is done hassle free via Phone. I should be receiving acknowledgement of the Cancellation via letter within two weeks time.

I believe next year 2010 would be a tough year for those involve in promoting new Credit Cards, Industries that accept Credit Cards as the main mode of payment like Telemarketing Industries i.e selling Insurance, Holiday Packages via Phone etc.

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DAP urges withdrawal of credit card tax

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I plan to keep One Credit Card only .

What about you?

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Maybank Latest Official Announcement on the RM50 Service Tax on Credit Card and Charge Card

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Dear Maybankard and American Express Cardmembers,

In view of the recent announcement of the annual RM50 service charge on each principal credit card and RM25 on each supplementary card, we would like to advise all our cardmembers that :

1. The annual RM50 and RM25 Service Tax imposed on each principle and supplementary card respectively will be charged to your card account on the renewal anniversary of your Cardmembership.

   Please refer to the “valid thru” date on your card for the renewal anniversary. For example, if your “valid thru”date is 11/12, the annual Service Tax will be charged in November 2010 and every November thereafter. For newly approved Cardmember after January 2010, the Service Tax will be charged to your account the same month the card is issued.

2. In the meantime, continue to enjoy the many Treats and Membership Reward privileges of being a Maybankard and American Express Cardmembers :
   • Free for life annual fee for PETRONAS Maybankard Visa, PETRONAS Ikhwan, SonyCard and American Express Gold Credit Card
   • TreatsPoints and Membership Reward Points that never expire
   • Earn 2x, 5x, 8x and 10x points at selected merchants during promotional period
   • Largest network of over 4,000 EzyPay merchants offering 0% installment plans for Maybankard Credit Cards
   • On-the-Spot redemption of TreatsPoints at over 600 merchant outlets
   • Convenience of settling your credit and charge card bills at any of our 450 branches nationwide or via online

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Maybank not absorbing RM50 credit-card service tax

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MALAYAN BANKING BHD will not be absorbing the RM50 credit-card service tax as doing so would run counter to the objective of the measure’s introduction under Budget 2010, says the bank’s CEO Datuk Seri Abdul Wahid Omar.

He said the government had introduced the tax to ensure the public would not be overburdened by high credit levels as the household debt in this region was relatively high.

“We must observe the spirit of the introduction of the RM50 tax in the first place, which is why the bank will not absorb the cost,” Wahid said at a signing ceremony between Maybank and MoneyTree (M) Sdn Bhd earlier today, for the sponsorship of a year-long financial-literacy programme for youngsters.

The government had introduced a RM50 service tax for principal card holders and RM25 for supplementary card holders under Budget 2010.

Wahid said consumers were likely to lower the number of credit cards they signed up for due to the service tax.

He added that Maybank had a credit-card loyalty programme and the points collected could be used to offset the RM50 tax.

Wahid said Maybank was also aggressively promoting its debit cards as an alternative to credit cards among it customers.

Asked if the bank was seeing any reduction in the number of credit-card holders, Lim Hong Tat, Maybank’s head of consumer banking said, “Not much reduction has been seen.” He added that it was “still within control” and that the impact would become clearer in the next few months.

Lim said Maybank would have two million Visa debit-card holders in the next one or two months, with 101 million transaction per month, while its credit-card base had reached 1.6 million users.

Meanwhile, on Maybank and MoneyTree’s collaboration, Wahid said the financial-literacy programme would benefit 25,000 youngsters in universities and schools.

MoneyTree chairman Datuk Nik Kamaruddin Ismail said the company would begin to educate youngster between six and 20 years old on financial literacy and skills to manage personal finances, in January.

from:theedgemalaysia.com/index.php?option=com_content&task=view&id=155944&Itemid=79

Credit card tax for existing users to start on anniversary date

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Applicants issued with new cre­dit and charge cards next year will have to pay the RM50 service tax upfront.

For existing card holders, the charge will be im­­posed on the anniversary date of cards.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who confirmed this with The Star yesterday, said the Government would impose the service tax for credit and charge cards from next year.

“Existing cardholders will only be charged the ser­vice tax through their issuing banks upon the aniversary date of the card.

“For example, if the card’s anniversary date is in January, then you pay the tax in January. But if the date is in April, then you only pay the tax in April,” he added.

The minister’s clarification puts to rest nagging doubts among the millions of credit card holders in the country who have been raising queries since Prime Minister Datuk Seri Najib Tun Razak an­­nounced the new tax when he unveiled Budget 2010 in October.

Najib, who is also the Finance Minister, had said that a RM50 service tax for principal credit and charge cards and a RM25 for supplementary cards would be imposed from January.

This has led to card holders asking if the charges will be imposed from Jan 1 or on the anniversary dates of the cards, which are usually issued for a three-year period.

Those holding a string of cards were most eager to know before deciding to cancel some of their ac­­counts.

A check with the customer service departments of several commercial banks showed that they had yet to receive any definite confirmation.

Some banks said they were still awaiting for a directive from Bank Negara, while others think the tax would be imposed on the anniversary dates.

A third group of banks has also offered to absorb the tax for the cardholders, on condition a certain amount of money was spent within a certain timeframe.

Cardholder Y.L. Sim, who called up the bank to cancel his credit card, said the bank advised him “not to be hasty.”

“The officer said that they had yet to receive a formal directive from Bank Negara (on when to impose the tax). But I was worried as the New Year was nearing,” he said.

Deputy Finance Minister Datuk Chor Chee Heung, when contacted, advised cardholders to plan accordingly, saying holding two credit cards was enough.

““Even I intend to hold only two credit cards,” he added.

He urged those who had large outstanding credit card debts to stop using the cards and meet the issuing banks to work out a repayment mechanism.

There are some 11 million credit cards circulating in the country.

from:thestar.com.my/news/story.asp?file=/2009/12/21/nation/5343737&sec=nation

Have you cut it?

Don’t protest, I mean no offense, please don’t be over-sensitive!

In fact, it is just a ridicule among friends.

Since the government made an announcement to start imposing the RM50 service tax on credit cards next year, many people will ask: “Have you cut it?” when they meet their friends.

To be honest, many people would like to cut it but the problem is, two months after the announcement was made, they are still wondering whether they should cut it.

The government said the measures was meant to encourage saving by reducing unnecessary consumption and it was as well meant to reduce the problem of “credit card slavery”.

It is not necessarily the actual situation. But the government’s tax revenue will be increased for sure.

Contrary to the government’s view, instead of spending extravagantly, many people save money by using their credit cards. For example, you may pay electronic equipment in installments without interest charge by using your credit card.

Also, if you use your credit card to pay for fuel, you can enjoy 2% of discount and at the same time, you can accumulate points for gift redemption. It is one of the ways to save money, too.

Some banks cooperate with insurance companies to allow its credit card users to enjoy 3% of discount if they use the credit cards to pay their insurance annual fees.

Some banks also work together with shopping malls, allowing its credit card users to enjoy up to 20% of discount if they use the credit cards to pay for parking fees.

In short, if you know how to make good use of credit cards, it can be considered as smart consuming, too. Save a little bit here and there and you will find it a considerable amount after a year.

On the contrary, if you do not know how to use your money well, even with only one credit card in hands, you may also end up as a “credit card slavery”. And even if you have no credit card at all, you still may have to bear a lot of debts.

The announcement was made two months ago and we have only 10 days to go before the official implementation date. However, only now the government is trying to clarify the doubts, isn’t the “efficiency” too low?

In particular, they said all credit card users will have to pay RM50 per principle card and RM25 for each supplementary card, but today, they announced the latest measures. Our officials are having the same style of doing things, just like the controversial measures of limiting the amount of petrol pumped by foreign-registered vehicles at petrol stations located in border states. They always give the impression of “hasty decision and rapid change”!

As we understand too well such “hasty decision and rapid change” bureaucratic culture, the people are unable to make the decision whether they should cut it.

However, although I don’t know how other credit card holders feel, I have made up my mind and decided to join the 800,000 card holders to cut it!

I’m going to cut it, how about you? (By LIM MUN FAH/ Translated by SOONG PHUI JEE/ Sin Chew Daily)

from:mysinchew.com/node/33120?tid=