Tony Pua on Plastic

Posted in Debts, Entrepreneurship, Malaysia Personal Finance |

Photo courtesy of Hey Gem

You must have already heard about the RM50.00 service tax imposed on all credit cards (incuding supplementary cards at RM25 each). I certainly do not think that such a blanket policy is aimed at curbing over-spending. I am sure not every plastic users in Malaysia are behind on their payments. Such an act is only a sign that the government is running low on cash, and for all you know, they are going to charge a new road tax for every tyres you have in your car- which includes your spare tyres!

Here’s a nice article from Tony Pua on his thoughts about the new Plastic Policy by our beloved Government…

I MUST say that Budget 2010, announced by Datuk Seri Najib Razak on 23 Oct 2009, contained quite a few surprises for better or for worse. And my observation is from someone who has pored through the government’s budget over the past five years.

For one, I’ll have to start picking up the phone over the next few weeks to cancel my many credit cards. An unwelcome announcement was that beginning 1 Jan 2010, we will be taxed for every card we own, regardless of whether we are or aren’t in debt.

At RM50 per card, and RM25 per supplementary card, that’s probably enough to set me back at least RM700 per annum. Yes, I have indeed a whole string of credit cards, but thankfully without any debt attached to them.

Click here for full article…

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The excuse that PM gave for charging RM50/credit card is to give prudent spending habit is RUBBISH from my opinion. The actual reason is the government has no more money to spend so that to create 'source' of income for them. Please browse through the National Audit report that is released recently, the government itself is not giving a good example in prudent spending like buying things with astronomical price with the stupid reasons given. The money they collected from the Malaysian credit card holder is not enough for them to waste. If the government is good in financial planning, why all tax payers money is spent sooooo unwisely. It can be used to cover the what so called credit card service charge, upgrade public transport system, provide scholarship to the poor and others. PKFZ issues…..see how much money is wasted..Now they have no choice and come the squeeze rakyat now. Others example is the property tax. If we fully use the money to develop the country….Singapore is far behind us already….

Comment by cheongpeng — November 2, 2009 @ 7:23 pm
You know, the Government has found a way to tax people earning Rm18,000 a year. Previously, this group of people won't get tax because their income is low. However, since the minimum requirement to own a credit card is only RM18,000 income per annum, these people if they own a credit card, will need to pay the service fee.

Comment by 1Malaysia — November 5, 2009 @ 11:11 pm
All they wanted is get more revenue for their coffers.

Comment by min dfim — November 6, 2009 @ 11:58 pm