ADVERTISEMENT

‘Reduce SST for credit cards’


The RM25 SST on credit cards may discourage people from going cashless. —filepic

The RM25 SST on credit cards may discourage people from going cashless. —filepic

KUCHING: The Federal Government has been urged to review or reduce the RM25 payment for credit cards under the Sales and Service Tax (SST).

A credit card holder, who wanted to remain anonymous, said it would be a burden for those with more than one credit card to pay the tax.

“Many people hold several credit cards for the sake of convenience, so that we don’t have to carry a large amount of cash and also because different cards have specific benefits.

“It doesn’t necessarily mean that we are rich if we have more than one card. The service tax of RM25 per card is a burden for those with multiple cards,” he said.

He hoped the Government would reconsider the tax rate or reduce it to lessen the burden of Malaysians.

“The other suggestion is to charge the RM25 service tax per customer instead of per card,” he said.

It was reported that the service tax of RM25 per card per year will be imposed on the issuance or renewal of principal or supplementary credit cards and charge cards beginning this month with the implementation of SST.

Those with existing cards will not be charged the RM25 service tax until the next annual renewal, according to the Customs Department’s list of frequently asked questions on SST on its website.

Sarawak , credit card tax , SST

   

ADVERTISEMENT