If you have a lot of credit card, you might be impacted with SST as Credit Card Might Be Charged RM25 Under SST
As according to the latest news from The Edge, the new proposed new model for the sales and services tax (SST) will include the charges of RM25 on the credit card. The Service tax on credit or charge cards was scrapped when the goods and services tax was implemented back in 2015.
This is as per according to the Royal Malaysian Customs website, under the Frequently Asked Questions on Service Tax, the following was stated as Question 35:
Q: Will I be charged RM25 on existing credit or charge card on Sept 1, 2018?
A: The existing effective period of the card will not be subject to service tax of RM25 until the next annual renewal.
In short, the service tax of RM25 will be charged upon renewal of the card on each credit that you individual owns. Under SST 2.0 the RM25 charge will be applied to each credit or charge card, regardless if it is a principal or supplementary card.
But this is just an initial stage and there is no announcement yet from the government. We will just have to wait and see for the final announcement on the SST.
If this is true, then you might want to rethink if you have multiple cards whether is it still worth it. If you have 10 card then you would need to fork out RM250 just for SST and that is a lot just for tax!!