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The Malaysian government's plan to levy an annual tax on holders of credit and charge cards would provide an efficient barrier against consumers running up debt, a spokesperson for a consumer-advocacy group tells CardLine Global. Starting on 1 Jan., the government will impose what it calls an annual service charge of 50 ringgits (US$15 or 9.90 euros) for principal credit and charge cards and 25 ringgits for secondary cards (CardLine Global, 27 Oct.). The government announced the measure as part of its 2010 budget, though details remain unclear about how the government will collect fees. "The tax will make sure that only those who could afford the cards would use them," says the spokesperson at the Federation of Malaysian Consumers Association, an umbrella organization for various consumer groups. "We also want that an income of 3,000 ringgits should be a minimum eligibility requirement to own a card." The association also might support a requirement that cardholders pay higher minimum repayments for card bills, the spokesperson adds.
