PETALING JAYA, Malaysia - Debit and petrol cards do not fall under the purview of the RM50 (S$20.50) service tax imposed on credit or charge cards.

The Association of Banks in Malaysia said other cards not included were closed community charge cards used at workplaces, schools and clubs, as well as loyalty and e-money cards like Touch 'n Go.

"The service tax will be collected by banks and other card issuers from credit and charge cardholders and paid to the Customs and Excise Director-General.

"In this respect, the amount of service tax payable will be set out in the cardholders' monthly statement separately," it said in a statement yesterday.

The association added that the tax was chargeable when the credit or charge card was issued, on the anniversary date or upon renewal.

The tax will not be charged for replacement cards issued in connection with lost or spoilt cards and fraud.

"Banks and other card issuers are allowed to enter into arrangements where cardholders may apply for redemption or reward points or rebates they earn through using their cards for the payment of the service tax," it said.

Member banks and other card issuers will be contacting their cardholders in respect of the imposition.

Starting Jan 1, there will be a service tax of RM50 a year on each principal credit and charge card, and RM25 on each supplementary card as announced in Budget 2010.