Common FAQ for new Government Service Tax (GST) on credit card cardholder

1. What is Government Service Tax (GST) on credit card cardholder?
   GST is a new tax imposed by government to all Credit and Charge Card issued prior and after 31 December 2009 by financial institution under section 25 of the Payment System Act 2003.
   
   
2. What is the rate of tax imposed by this GST?The rate of tax amounts are:
   RM50 for principal and RM25 for supplementary for each card holds by the customers
   Examples:
   Customer A holds 2 principal cards with 2 supplementary cards.
   GST will be calculated as follow:
   RM50 X 2 (2 principal cards) + RM25 X 2 (2 supplementary cards)
   = RM150 (RM100 (principal) + RM50 (Supplementary)
   
   
3. When will it be affected?
   01 January 2010
   
   
4. Who will this GST become chargeable to?
   GST is chargeable yearly to all existing Credit Card cardholder during renewal, new approved card and upgrade card issued after 31st December 2009 and but not applicable for lost and replacement card.
   
   
5. Will the Credit Card cardholder be charge with GST even the Credit Card Annual Fee has been waived earlier?
   Yes. Even the Credit Card Annual Fee has been waived or free for life.
   
   
6. If cardholder received an upgrade invitation and accepted it after December 31st 2009, should the cardholder be liable for another GST for a new upgrade card issued?
   Yes. Customer will be charged another GST for the new upgraded card.
   
   
7. What happen to the GST amount billed earlier if cardholder later decided to cancel the card, should it be refundable?
   No. Once GST has been billed, it will not be refundable and customer will need to pay even if they request to cancel the card. In the event customer did not pay, account will be delinquent and status will be updated in credit checking record.
   
   
8. When should this GST charge to cardholder credit card account?
   Generally after December 31st 2009, GST will be charged to cardholder at the same time their Credit Card is being issued. i.e. New approved credit card, upgrade or renewal issued on 08/01/2010, the GST will be debited into the Credit Card account on the same day (08/01/2010). Please refer below scenarios:
   
   Example 1: (New card valid for 1 year issued on 08/01/2010)
   
   
   Example 2: (Existing card valid for 5 years issued on 08/03/2009)
   
   
   
9. If Credit Card is applied in December 2009 but only approved in January 2010, will cardholder be exempted from the GST?
   No. As long as card approval is as at 1 January 2010, GST will be imposed and chargeable to credit card cardholder.
   
   
10. When should the Credit Card cardholder pay the GST?
    The GST amount will be reflected accordingly into cardholder statement of account and payment should be made accordance to the statement total amount due and due date. Please refer below illustrations:
    
    Example: Customer A (holding only one principal card) with current opening outstanding balance of RM1,500.00 with no transaction in August 2010 billing period.
    
    
    Example: Customer B (holding one principal and one supplementary card) with current both card opening outstanding balance of RM3,000.00 with no transaction in August 2010 billing period.
    
    
    
11. Should GST amount be refunded if Credit Card is not activated or utilized after payment made?
    No. All GST amount charged and paid will not be refundable even if the customer have not utilized or activated their Credit Card.
    
    
12. How about those customers who have cancelled their Credit Card after payment for GST was made, did they entitle for refund?
    No. All GST amount charged and paid will not be refunded once the Credit Card has been issued.
    
    
13. When will this GST expired?
    This is a new tax imposed to all Credit and Charged Card by Government and it will apply until further notice.
    
    
14. Can this GST be waived?
    No. This GST cannot be waived and all banks are not allowed to absorb the charges.
    
    
15. Can customer use REWARD points to redeem against GST amount?
    Yes, the GST amount can be redeemed via REWARD points as follow:
    • Fast Track – 5,000 REWARD points + RM25 for Principal
    • Normal redemption – 10,000 REWARD points for Principal
    • Normal redemption – 5,000 REWARD points for Supplementary
Applicable only to Classic, Gold, Travel Money, EVO, Platinum and Infinite credit card holder.


16. How about TESCO and PLUSONE credit card member? How are they going to redeem the waiver?
    No these cards are not applicable for redemption against GST amount. Method of how to redeem the specific Club Card point and PlusOne RM will be notified in due time. (if any)
    
    
17. Then I would like to cancel my RHB Credit Cards.
    RHB Credit Cards have a wide range of benefits and privileges that come with it. Some of the general benefits include:
    • A range of credit cards to provide to different needs & lifestyle to suit our customers’ needs
    • Wide branch network nationwide for customers’ convenience
    • 24X7 Phone Banking
    • Balance Transfer of up to 24 months with just interest of 0.5% per month
    • On-The-Spot Redemption at participating partners where cardholders get to redeem desired items on the spot with RHB Rewards Points
    • Smart Installment Plan with 0% interest for up to 36 months on any purchases at selected merchants
    • Dial-an-Investment allow flexible installment plan with minimum RM500 retail purchases
    • With the RHB Reward Points earned, cardholders can choose to redeem from a wide range of selections from household items to gifts for loved ones
      
      
18. But there is not much difference to other banks’ credit card. (Applicable to individual card type)
    In addition to the above, each credit card has its unique features & benefits, catered to different customers’ needs:
    1. Platinum & Gold
       • High credit limit
       • Travel Insurance Coverage of up to RM600,000 (Gold) & RM2 million (Platinum)
         
         
    2. Travel Money
       • Cash back for all petrol purchases – 2% on weekdays & 5%* on weekend
       • Travel Insurance Coverage of up to RM4 million
       • Contactless card feature for faster transactions
         
         *applicable till 30 June 2010
         
         
    3. Tesco-RHB
       • Co-brand credit card with Tesco that offers both Cash Back & Clubcard Points
         
         
    4. PlusOne
       • Additional benefits applicable for purchases at SenHeng outlets and senQ Digital Stations
       • Extra 2 years warranty
       • Free delivery for purchases above RM500