Do you have more than one credit card? If you don’t need so many credit cards, you can choose to cancel them so as not to be subject to a service tax of RM25 every year.
The government has implemented a sales and Service Tax (SST) since 2018. Each credit card will be subject to a service tax of RM25 per year. If you have 3 credit cards in hand, you will be subject to a service tax of RM75 per year.
If you successfully apply for a credit card but do not become Active, you are also subject to a service tax of RM25 per year. Therefore, if you do not use these credit cards, you may as well cancel them all.
Generally, credit cards are subject to RM25 service tax in the first month of issuance, i.e. if your credit card is approved in July, the RM25 service tax will be paid in July of each year. Most banks will automatically deduct the service tax from your savings account.
Regardless of whether the credit card you hold is a master card or a supplementary card, you are subject to RM25 service tax.
