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| Q1:
What is the credit card service tax? |
| A1: In the 2010 Budget announcement,
the Government proposed to impose an annual service
tax of RM50 for all principal credit and charge
cards, and RM25 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. |
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| Q2:
When will I be charged? |
| A2: New cardholders from 1 January
2010 will be charged in their first monthly statement.
For existing cardholders, the service tax will
be charged on the anniversary of their Credit
Card issuance date. |
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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 the open dates
of the card on every subsequent anniversary date,
i.e., 9 March 2011, 9 March 2012, 9 March 2013
and 9 March 2014. |
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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. |
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| Q3:
Will I be charged for this service tax? |
| A3: The service tax is applicable
to all Malaysian credit cards after 1 January
2010. |
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| Q4:
Can I redeem my Choice Points to offset the service
tax? |
| A4: Yes, you may use your Choice
Points to redeem cash rebate to pay for your service
tax as follows: |
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| Card Type |
Applicable Government
Service Tax |
Choice Points Required |
| Principal |
RM50 |
10,000 |
| Supplementary |
RM25 |
5,000 |
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| Q5:
If I have three (3) Cards with Standard Chartered
Bank, will I be charged for one (1) or all three
(3) Cards? |
| A5: The service tax is applicable
and imposed to all cardholders by card. If you
currently hold 3 Cards with Standard Chartered
Bank, you will be charged for each Card held. |
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Example: if you currently posses two (2) Principal
Cards and a Supplementary Card, the total tax
applicable to you would be RM125. (RM50x2 Principal
Cards + RM25x1 Supplementary Card) |
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| Q6:
How do I pay for the credit card service tax? |
| A6: The credit card service tax
will be charged to your Credit Card account and
automatically reflected in your statement as a
credit balance. The specific service tax amount
will be automatically remitted to the government
once you have made the payment. |
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| Q7:
If I receive a replacement Card from Standard
Chartered as my original Card was either lost,
stolen, or had been fraudulently used, will I
be required to pay for the service tax again? |
| A7: No, service tax will not be
charged for such cases. |
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| Q8:
If I cancel my Card after the service tax has
been billed, can I get a refund? |
| A8: Unfortunately, the service tax
is non-refundable for such cases. |
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