Tax on Credit Cards - 2010 Budget

During the budget speech on 23 rd October 2009 our PM annouced that to curb credit cards abuses, the government will impose a tax ob RM50 per annum tax for primciple card and RM25 for supplementary card.

This will certainly prompt people who hold more than one card to return them to the issuers. Certainly this will have an impact on the usage of credit cards, and mostly affecting the card issuers as more people opt to hold fewer cards.

Whether this move will curb spending is yet to be seen. Because instead of spending on several cards,people will spend on a fewer cards in hand, thus the total spend may not reduce.