Appendix 16 of the Budget 2010 has proposed that service tax be imposed on credit cards and charge cards including those issued free of charge as follows:

i. RM50 per year on the principal card; and
ii. RM25 per year on the supplementary card.

Service tax will be collected on the date the card is issued, on the completion of each year or on the date of renewal.

----------------

Will banks take up those charges or transfer it to customers naturally. If the banks impose it to consumers, i definitely be the first to cancel the credit card immediately.