I WAS hoping the tax on credit cards would be abolished in Budget 2021 and was therefore disappointed that it has not been considered.
As we move towards a cashless society and are being encouraged to conduct financial transactions online due to the Covid-19 pandemic, it seems that credit card holders are being discriminated against by having to pay a tax of RM25 a year for each card.
The credit card has been in existence as a form of cashless transaction for a long time before the debit card and, most recently, the e-wallet.
I find using the credit card more convenient than using the e-wallet. Firstly, one does not need to have a smartphone and mobile data to use the credit card. Secondly, there is no need to top up a credit card as one would do with the e-wallet.
For credit cards, one just needs to pay what is owed by the payment due date, that is one single transaction for this purpose.
This is the only discipline that credit card holders need to follow to avoid paying late payment charges and interest on the amount owed.
I therefore urge the government to abolish the tax on credit cards once and for all or otherwise provide an explanation on the rationale behind this tax.
CP LEE , Penang
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