The government has increased the service tax rate from 6% to 8%. Credit Card Service Tax will remain at RM25 per annum.
The increase in service tax rate from 6% to 8% will be implemented from March 1, 2024, according to the Malaysian Customs Authority. This change will affect all services except food, beverages, telecommunications, parking fees and transportation services which will remain at 6%.
As for service tax per credit card also remains at RM25 per year, this includes both primary and secondary cards. If you hold 2 credit cards, you will need to pay RM50 service tax and so on.
Nonetheless, some credit card holders revealed that some banks are offering service tax exemption, as long as the cardholder makes specified purchases within a specified period of time, he/she will be exempted from the service tax and the RM25 service tax will be refunded to the credit card holder in the form of a rebate.
If you are planning to apply for a credit card, you may want to consider applying through RinggitPlus as there are various benefits that you will get when you apply for a credit card through RinggitPlus, for more details, please see: RinggitPlus Credit Card Sign Up Offer.
