29 December 2009

Debit Card is TAX FREE!!

There are a lot of rumours saying that every cards no matter debit or credit cards, you will be charged RM 50 service tax! I was very surprised and worried that if this happened, then I might have to cancel off my Public Bank Visa Electron Debit Card. Fortunately, the news has cleared off all the doubts, I will continue to swipe my Debit Card with care-free =P Swipe to the limit of my deposited amount of course!

Via TheStar:
The Association of Banks in Malaysia said other cards not included were closed community charge cards used at workplaces, schools and clubs, as well as loyalty and e-money cards like Touch ’n Go.

“The service tax will be collected by banks and other card issuers from credit and charge cardholders and paid to the Customs and Excise Director-General.

“In this respect, the amount of service tax payable will be set out in the cardholders’ monthly statement separately,” it said in a statement yesterday.

The association added that the tax was chargeable when the credit or charge card was issued, on the anniversary date or upon renewal.

The tax will not be charged for replacement cards issued in connection with lost or spoilt cards and fraud.

Starting Jan 1, there will be a service tax of RM50 a year on each principal credit and charge card, and RM25 on each supplementary card as announced in Budget 2010.

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