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Eon Bank Bhd has experienced a 50% drop in credit card applications since a government proposal to tax credit cardholders was announced earlier this year, a spokesperson for the Malaysia-based bank tells CardLine Global. The tax, scheduled to take effect on 1 Jan., imposes a 50 ringgits (US$14.70 or 10 euros) tax on primary credit cards and 25 ringgits on secondary credit cards (CardLine Global, 30 Nov.). The government says the tax is designed to discourage consumers from carrying too many credit cards. The bank spokesperson would not say how many credit card applications the bank typically receives over a given time. However, "we have seen an impact on our applications, as we are sure other banks have," the spokesperson says. The bank, which issues cards supported by the MasterCard and Visa brands, has about 660,000 cards on issue, and the total should increase to 750,000 cards in 2010, the spokesperson adds.
