Announcement on Government Service Tax for Credit Cards

Dear cardholders,

  1. The government service tax will be imposed on your credit card(s) effective 1 January 2010.
  2. For new cardholders (cards approved from 1 January 2010 onwards), the service tax charge will be reflected in your first monthly statement.
  3. For existing cardholders, the service tax will be imposed annually on the anniversary of the credit card issuance date, and will be reflected in your credit card statement (including each renewed and/or upgraded credit card).
  4. For new cardholders, the service tax will be imposed on the credit card issuance date, and then annually on the anniversary of the credit card issuance date, and will be reflected in your credit card statement (including each renewed and/or upgraded credit card).
  5. The service tax will not be charged for any replacement credit card issued due to loss, damage or fraud.
  6. For cardholders with Choice Points, you may redeem your Choice Points to pay for the service tax.
Card Type Applicable Government Service Tax Choice Points Required
Principal MYR50 10,000
Supplementary MYR25 5,000

FAQs

    • What is the credit card service tax?

      In the 2010 Budget announcement, the government proposed an annual service tax of MYR50 for all principal credit and charge cards, and MYR25 for supplementary cards effective 1 January 2010. The objective of the credit card service tax is to promote prudent spending for all credit and charge card users.

    • When will I be charged?

      New cardholders from 1 January 2010 will be charged in their first monthly statement. Existing cardholders will be charged on the anniversary of their credit card issuance date.

      • Example 1: New card valid for 5 years
        A new credit card is issued to a new cardholder on 9 March 2010 with a validity period of 5 years. The credit card service tax would be chargeable on 9 March 2010, as well as on every subsequent anniversary date, i.e., 9 March 2011, 9 March 2012, 9 March 2013 and 9 March 2014.

      • Example 2: Existing card valid for 5 years
        A credit card was assigned to an existing cardholder on 20 May 2009 with a validity of 5 years. The credit card service tax will be chargeable when the credit card is renewed on 20 May 2010, 20 May 2011, 20 May 2012 and 20 May 2013.

    • Will I be charged for this service tax?

      The service tax is applicable to all Malaysian credit cards after 1 January 2010.

    • Can I redeem my Choice Points to offset the service tax?

      Yes, you may use your Choice Points to redeem cash rebate to pay for your service tax as follows:

      Card Type Applicable Government Service Tax Choice Points Required
      Principal MYR50 10,000
      Supplementary MYR25 5,000

      How to redeem: A cash rebate to pay for service tax can only be redeemed when the tax is charged on your statement. Check out our latest Rewards Catalogue at www.standardchartered.com.my. You can now redeem your rewards online.

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