KUALA LUMPUR, MALAYSIA - There are no immediate plans to revise the RM50 (S$20.475) annual service tax on credit and charge cards, says Prime Minister Datuk Seri Najib Tun Razak.

Despite public complaints, Najib said it was too soon to talk about a revision as the matter was just recently announced in the 2010 Budget.

'Tunggulah dulu (We wait first). The Government also needs revenue. If we can't hike up (the price of) anything, susah kita (it would be hard for us).

'Who is going to fund the nation's development?'

He was speaking to reporters at a press conference after attending Tenaga Nasional Berhad's 60th anniversary celebration at the TNB Sports Complex here yesterday.

Najib announced the proposal to impose a service tax of RM50 for each main credit and charge card, and RM25 on supplementary cards in his 2010 Budget.

If implemented, financial analysts predicted that at least 30% of the holders of 11 million cards in circulation who have more than one card will have to pay RM100 every year.

Najib had earlier pointed out that the public should look at the overall benefits offered by the Government in the Budget, including an additional RM1,000 tax relief and a reduction at the top of the taxable income tier from 27% to 26%.

'So they get two (relief measures) and only have to pay RM50 (per credit card). Don't tell me they cannot pay RM50?' he said.

It was reported in The Star yesterday that applications for new credit cards dropped by 80% following the Government's an-nouncement of the service tax starting next year.