Credit Card Service Tax..its here whether you like it or not

Service Tax for credit cards has finally been imposed as at 1 Jan 2010.
Thankfully it will only be charged on the anniversary date.

Indirectly, its also a way for us who have many credit cards to use this as a way to consolidate and simplify our life.

So what have I done to avoid being charged service tax?
- Cancelled my citibank Air Asia card in Dec 2009 [anniversary date: Jan]
- Cancelled my HSBC Master card in Dec 2009 [anniversary date: July]
- Applied for new MBF card with 0% bal transfer deal for 12 mnths in Dec 2009
- Redeem almost all my points on Standard Chartered Credit Card
- Cancelled MBB Petronas Visa card in Dec 2009
- Cancelled MBB Ikhwan Amex card in Dec 2009
- Cancelled my Alliance Ikea card in Jan 2010 [anniversary date: Feb]

Moving forward, i need to do the following to avoid the credit card service tax:
- To cancel MBF lady card in April 2010
- To redeem HSBC points and cancel HSBC Visa card in June 2010

Am still contemplating whether to cancel the following:
- Maybank Petronas Visa Ikhwan card [very tempted to cancel apart from the thought in case I need to sign up 0% EPP plans in future and maybank always accepted everywhere]
- Std Chartered Visa card [coz they have sure-win contests which I hv won RM50 last yr, and iPod this year]

I will keep and endure the RM50 service charge on the MBB Gold AMEX card, as that gives the best deal. 5x points on grocery,bookstore purchase & petrol, 3x points for autopay mobile bill, 2x points for other purchase.


What have you done to avoid being charged service tax?

When will Service Tax on Credit Card be imposed?

I have been googling around to find the exact date when the service tax on credit cards will take effect? However, there seems to be unclear information from the government til now.

Have called the banks to ask, their answer is to wait. no need to cancel your card yet.
But how long to wait? cancellation doesnt take effect immediately..so when want to cancel also must strategise properly.

This is agonising! RM50 per card is unnecessary money to waste. That can pay 30 days of my breakfast every morning.

The only good thing is MBF have announced that they will cover the RM50 service tax. So if you want to save some cash, can apply MBF cards. Not only that, they have even came up with the 0% power balance transfer offer, as long as you spend minimum RM300 per month.
So if you've got to pay telco/utilities bills /petrol..then RM300 can easily be met.
Heck...if can delay payment & invest your cash instead..why not right?

p/s: Learn how to settle your credit card debts on your own...
Click Here!