Notice! If you successfully apply for a credit card but it has not been activated, you may be required to pay an RM25 service tax. If you don’t notice it, it could lead to service tax arrears, which could affect your loan credit in the long run.
Last year, a travel blogger had a similar experience when he cancelled a credit card 5 years ago but failed to notice that the credit card’s RM25 service fee remained unpaid, resulting in the RM25 service tax increasing to RM408 after 5 years. In the last five years, the bank has not sent any notices to consumers.
You should be aware of this if you have a tendency of applying for several credit cards. Whether you have activated the credit card or not, you will be charged a service tax of RM25 after it has been approved. Whether you’ve ever had to cancel a credit card, you should check to see if there’s any overdue service tax.
In 2018, the government will adopt the Sales and Service Tax (SST), which will impose an RM25 annual Service Tax on each credit card. The service tax of RM25 is usually charged in the first month after issuing the card; for example, if your credit card is accepted in July, the service tax of RM25 will be paid in August.
If you cancel your credit card after one year in July, you may be required to pay RM25 service tax for the second year. You may be in arrears with the service tax if you do not pay the RM25 service tax when you cancel your credit card.
