Update 23/3/2015: Latest news

PETALING JAYA: Credit card holders will have to pay the 6% Goods and Services Tax (GST) on the card’s annual fee, but the RM50 service tax will be dropped.

“Some banks may however waive the annual fee upon request.

“Then in such cases, there will be no GST payable,” said Association of Banks in Malaysia executive director Chuah Mei Lin (pic).

Banking sources explained that the GST on the annual fee might vary from RM53 to RM500, depending on the type of card.

They said that cardholders could use their loyalty points or rebates to offset the 6% tax.

Chuah said the implementation of GST would also mean that the RM50 Government service tax on the principal cardholder and RM25 on each supplementary card, which has been imposed since Jan 1, 2010, would be abolished.

“Beginning April 1, this service tax will be abolished in accordance with the GST Act,” she said in a statement.

Chuah also made it clear that GST would not be imposed on late payment charges and finance charges.

“Late payment charge refers to the charge when the cardholder fails to pay at least the minimum monthly payment by the due date,” she said.

Finance charges, she said, were charges imposed on the cardholder on the outstanding balance which has not been settled on or before the payment due date.

Chuah also dismissed talk that cardholders would have to pay GST each time their card was swiped.

“GST is not chargeable when swiping a credit card to make payment.

“For example, if you eat at a restaurant which is registered for GST, and the bill comes to RM50, you will be charged 6% GST on the total bill. So the amount you have to pay would be RM53 (ie RM50 + 6%).”

“If you choose to pay for the bill using your credit/debit card, you will not be charged a further 6% on top of the RM53,” she said.

Customs Department GST director Datuk Subromaniam Tholasy said the abolition of the RM50 service tax would benefit cardholders as they would now only have to pay the 6% on the annual fee.

“For example, if an annual fee of a platinum card holder is RM500, then the cardholder will only need to pay RM530 (RM500 + RM30, which is the 6% tax).”

“The RM30 is obviously a lesser amount that a cardholder has to pay compared with the RM50 service tax,” he said.

http://www.thestar.com.my/News/Nation/2015...n-cards-annual/

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This post has been edited by weyyt: Mar 23 2015, 04:06 PM

Haters gonna hate... People should realize that we have a very thoughtful and caring government...

kenapa tak puji?

How about Maybank CC? Any news on that?

Good... all my CC is free for life.

All will be waived for the RM50 service tax

Does this mean all credit card transactions will have a 6% fee?

at merchant side? yes lor..

Farkkkk my bank just charge last week wtf

Ter!ma kasih perompak tak rompak.....

So need look for cards which waive annual fees

Which means if im buying something, i will be charged 6% and on top of that, i will be charged another 6% from my total because im using a credit card?

dun think so

The article says merchant will charge 6% but didnt mention if its only for the goods/services or for the credit card transaction (which is also a service).

This post has been edited by max_cjs0101: Jan 12 2015, 10:45 PM

Not everything kena 6% lah. If you buy mostly fresh food, then high possibility no GST is charged.

If this really happen, buy items using credit Card kena gst 12%.

FML

Next trend - New CC no longer have "waived" annual fees.

Cepat go apply credit card. Spend before GST. Go go go.

---mistake on understanding, post deleted before /k lunch hour all come shoot me---

This post has been edited by CyrusWong: Mar 15 2015, 11:06 AM

Im saying what if im paying for a service which has a 6% GST and im using my card.
Will i need to pay another 6% on top of my bill because im using the card?

Of course not.

The final amount has included the 6% GST from the merchant.

You won't be charged for another 6% GST by the bank. This will incur double taxing error. GST on GST.

on its item only la right.... i go thai shopping no double charge also... pay the same shit as cash... dont tell me GST in malaysia is crazy shit charge us twice

6% GST will instead apply on credit card annual fees – which can range RM70 annually to over RM1,000, depending on the type of card.


can anyone explain this in a way that every one understands

thx

If that's the case, why did the article say this "full dispute amount will be refunded – including the GST charged by the merchant"

Shouldnt it be just "full amount"?

This post has been edited by max_cjs0101: Jan 12 2015, 10:51 PM

Annual fee will have GST - as simple as that.

which can range RM70 annually to over RM1,000, depending on the type of card.

Refer to Minute 0:36, it says Financial services wouldn't have GST.

I think charge by merchant means merchant sell to you GST-charged item, the amount with GST will reflect in your statement. If some stuff you bought was charged with GST but it shouldn't be, the bank will claim you the amount that you've paid. Based on the video that i've posted, surely no GST for every swipe payment. Hopefully la

those black card and premier card have annual fee one..

It means that if you have filed a dispute for an entry. That entry has been charged with GST included (RM X).

If dispute successful and you're to be refunded, you should be refunded with the full amount with GST has been charged earlier (RM X and not RM X - GST).

some godlike card their annual fees is 800 to 1k

so u need to pay annual fees 800+ 6%

if your CC no annual fees = no need pay GST

vavi mahal

Depends on your card and card level, annual fee can range from RM 70 to RM 1000!

yes..great move.
now time to apply all those no annual fee cards but hardly use.
can keep it as collection or for promo

thx muacks...today very tired...brain not functioning

If you apply now you still need to pay the RM50 govt tax

Also one should note that whatever fee that the bank charges will attract GST:

1. Late payment fee
2. Early settlement fee for installment plan/balance transfer if applicable
3. Cash advance fee
4. Annual fee
5. Annual management fee (for Islamic cards)
6. AOB

Some bank will still offer GST rebate campaign! Happy scouting!

This post has been edited by David83: Jan 12 2015, 10:57 PM

Langsung tak paham

After first april, all items or service purchase will kena gst.

So, for card approved before 1st April, just continue to pay items purchased gst + 50 for the card's tax.

Card after 1at april, pay items purchased gst + 6% of annual fee as gst.

Then better cancel all the card with annual fee less than 850ringgit before april and re-apply after 1st april.

If you buy something at RM100, the merchant bills you RM106 in total, so that is the amount charged to your cc. In case of dispute, the full Rm106 is refunded lah.

You're so confused.

The article is only mentioning about credit GST.

Nothing related to items you purchased. Whatever you purchased has nothing to do with the bank. GST calculation for the final amount to be swiped and charged to your card has nothing to do with the bank.

This post has been edited by David83: Jan 12 2015, 11:00 PM

so credit card statement RM10,000 + 6% end up we need to pay rm10600?

before we go waving our hands
6% on what ??

if total amount spend then this is shit big time

Not related.

Not related.

This post has been edited by David83: Jan 12 2015, 11:01 PM

no la..

why bank wanna charge u? the product is merchant's one, so one time gst lo? bank/credit card charge gst on their service only which is annual fee. not on the product.

thanks for clearing up. if not, i have to cancel my 2 newly approved cards

no la.. it you bought something in shop, rm10000 + rm600.. if swipe card will be rm10600.. when statement come is 10600 lor.. no tambah another 6%

why so many confused people in /K, practice speed reading is it.
simple sentence also cant comprehend

This post has been edited by one punch man: Jan 12 2015, 11:07 PM

considering so many confused souls over the GST here I'm surprised no Malaysians has done street protests against the govt

Terima kasih BN

Good, boleh start apply bank lain

after 1st april ..all cards will change from rm50 fixed tax to gst based

let say this year march u kena rm50 gov tax

next year march u will get GST based on your annual fees

no ...

GST is charged when u purchase that item

like in UK

some item they listed price ... like 20 pounds *

if got * there ..u need to manually top up another 17 to 20% VAT = your final price

u swipe your card with that final price ..at statement there will show your final price ...wont top up another 6% anymore

if 6+6 ..i rather pay back using cash ..CC can bankrupt ..lolx

This post has been edited by fantasy1989: Jan 12 2015, 11:34 PM

if card annual feel is RM1000, then gst is RM60 (1k x 6%), so have to pay total RM1060 annually

if card annual fee is RM 0, then gst also 0, means no need to pay anything every year

betol ka?

Yes

Pretty good seeing as most cc these days can offer annual fee waiving

yes

buy item rm1000 + 6% gst = rm1060

when paying cc bill, + 6% gst to bank credit service = rm1123.60

ooo if like that means the gst 6% is counted when you renew service fees only

walao if ur credit limit is high and they charge base on credit limit.....alot of poor f***er that has high credit will kena chop kow kow

smart move. i rather hve something permanent chanrged instead of somthing so ranrem

Just got statement from my bank literally telling that gst will be charged for everything.
No mention how it will be charged tho

dafuq ..why related to credit limit pula?

siao.
i will change all my card to gold card

I think they meant all fees and charges will attract GST.

Now on the product you swiped for as those will be taken care by the merchant.

all processing charges will get charged

like debit card annual charges will add gst lo ...eg: rm15 for debit card + 6%

some transaction which got processing fees will add gst also

Ha..ha..and all this while /ktards say only unemployed graduates (especially IPTAs) cant comprehend english.

your credit card statement of RM10,000 already inclusive of the GST lah.... the extra amount has already been charged by the merchants you buy the goods from.

directive now is all listed price must be inclusive of GST. So supposedly a $20 item will be shown as $21.20. Only the invoice will shows the original break down of $20.00 gross and $1.20 GST amount.

how many merchants are ready for that? I wonder.

only annual fees is charge extra 6%.
not on the item u pay. ...........

Yes. Anything that has a fee will be imposed GST fee as well.
From the statement it was targeted to all cards, deposits, unit trust, bonds, bizmoney, gold, treasury, custodian, transaction banking, loan facilities , accounts and/or services.

yeah. now cash is king again.



Attached File(s)
 GST_Guide_on_Commercial_Banking__draft_as_at_19_November_2013_.pdf ( 430.5k ) Number of downloads: 42

that's some high quality weed u smokin

This post has been edited by Memories_Fallen: Jan 12 2015, 11:49 PM

Later become like TNB. Government declare that for electrical consumption below RM20, the bill will be free. But few month later, TNB introduce minimum charge. And guess what? The minimum charge is RM20.

And now it is getting harder to waive the annial fee

Doesn't matter in this case. Spending target met, banks usually willing to absorb rm 50 tax on top of annual fee waiver.

Bash 1st read lter..

How come i still paying 0 elec bill?

Ready or not thay have too. Otherwise the would not be able to compete with big retailer

4 month before GST start many dont know how GST work? This kind of people is the target of dishonest seller..1 year plus is time for us to prepare, but most dont want to understand n keep bragging nonsense bout GST..now gelabah which is which.

This post has been edited by zaman_chem: Jan 13 2015, 12:09 AM

shitz....! the bank just charged RM50 to my CC few days ago !!! KNS

So u mean there will be 6% GST of the 2% CC transaction charges?

From what I know, BNM is pushing to reduce the cash usage and more policies will be introduced soon to encourage cards usage (debit/credit cards).

You crony or what? My normal electrical bill is around RM30 something. I went oversea for almost a month once. I shut down main switch. When i received a bill for that month, it's RM21.XX. I went to the TNB office to complain, they said that the minimum charge is RM20.

w8, what.? some1 flip on the switch. Or got blok prorata(kWh) reading?

Good. Time to cancel my Hong Leong cards. Every year also charged RM 400. If never call them to waive, they won't bother. Stupiak sales said free for life during application. Ass la.

Hmm.. should be twice.

The goods u bought and the service aka processing fee from bank

Hong Leong so hai bank...last time i returned and cut the card at their bank...months later, still send me statements with no transactions. Bodoh. Call them scold kaw-kaw.

Will be going to Standard Chartered to cancel my card soon. Cheebai bank, few days late payment reduced my credit limits to 2k!!!!!. Not like i owe them a lot, a few hundred bucks only.

yeah, my house always kena RM20.05, RM20.10, RM20.20
tak guna punya TNB

kata subsidi for usage <RM20
but bill comes out never got below RM20 even when i balik kampung for 2 weeks

thank god for this word "The bank also said there is no GST charged if the annual fee is waived "

merchant side yes, bank side will only charge 6% on bank imposed fees, e.g. late charges, annual fees, cash advance fees, etc

This post has been edited by kenji1903: Jan 13 2015, 07:55 AM

syukur lar

Agreed. HLB and SCB both f***ed up banks. Alreadyd desperate for customers and yet treat us like shit. I already cancelled all facilities with HLB. Also blocked their numbers from all my phones (friend in TM gave me all their numbers).

Mr. Elite, if you had read properly, you will get that i wasnt just talking about credit card gst only. I had listed the scenario as well.

Ohh i misunderstood. Thought card approved before april 2015 have to continue paying that 50myr even when gst kicks in.

Gaji je 20k tapi ramai bodoh. Simple GST pun fail. camna tah shopping overseas.

This post has been edited by samuraikacang: Jan 13 2015, 08:30 AM

so pelik one?

recently I got my bill -RM15.35, so I xpayah pay lor coz btm say subsidise by kerajaan BN.

bersyukur

btw ..my empty house if no ppl using ..maximum rm5 to 10 only

sometime go home and bath n open aircond sleep awhile (but fridge turned off)

they should give me a refund!

interest dont think so

but like when your streamyx kena cut (because u didnt pay for that) ..when re-activate streamyx sometime u will get charge service charges

service charges will get 6% GST

i think credit shield(credit card insurance) will have GST as well