Now what am I going to do with so much credit?! Wondering what I'm talking about?
With people cancelling excess credit cards ahead of the government tax taking effect next year, credit card issuers (banks in particular) have been increasing credit limit of cardholders probably in a bid to retain clents. I got a HUGE increase on my card. Crazy, I say! But oh well, it could come in useful someday....I think..
Debit cards and petrol cards are not affected by the tax (of RM50). Other cards not affected include closed community charge cards used at workplaces, schools and clubs, as well as loyalty and e-money cards like Touch ’n Go, according to the Association of Banks in Malaysia.
The tax (RM50) is only chargeable when the credit or charge card is issued, on the anniversary date or upon renewal. Which means, it is still not too late to have your card(s) cancelled, if you wish.
“Banks and other card issuers are allowed to enter into arrangements where cardholders may apply for redemption or reward points or rebates they earn through using their cards for the payment of the service tax,” the Associate of Banks said.
And added, "Member banks and other card issuers will be contacting their cardholders in respect of the imposition."
Source: The Star