Malaysian will usher in 2010 with the mad rush to cut off/cancel off their credit cards. The reason is the RM50 bucks service tax that will be imposed to the card holder for each piece of the plastic cash beginning 1 Jan 2010!!
Even supplementary card is taxed at RM25 each. Wow. the government is so desperate for money now that this could be "smartest" move to bring in more mollah to the coffers.
So, i just cancelled off my credit cards just to avoid this tax. Imagine those people that currently have multiple cards just because they wanted the "free" gifts upon sign-up. They need to go to a physical bank branch just to cancel it off. Luckily, the procedure is quite simple, just fill up a form and cut the credit card into 2.
Some banks are offering free cash upong signing up for cards though
Credit card interest earned the banks alot of money..They are like legalized loan sharks which charge high interest rates to defaulters.
Bank always do have an interest raise they don't usually think the side of card holder's. that's why we should know how manage our credit cards.
My friend, Welfred... Greed conquers even the most ardent souls..