One of the most glaring things out of Malaysia’s Budget 2010 was the RM50 charge on each credit card you hold which will be imposed by the Government in an attempt to police the citizen’s spendings habits and ensuring they do not hold more cards than you can afford.
Has it been a budget of goodies? Honestly, even if it was, none of the goodies will be remembered by the man on the street whose pocket is terribly hard hit by the charge imposed on credit card. In this day and age where the entire world is moving towards a cashless society and where Malaysians are feeling more unsafe everyday, the credit card has become a necessity rather than luxury.
So is it fair to impose charges on credit cards? Well, is it fair to impose charges on basic necessities such as food, water and security?
Instead, the Prime Minister said they should look at the overall benefits offered by the Govern-ment in the Budget.
“They are getting the RM1,000 tax relief and those paying tax at 27% will now pay 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 after a meeting at the 15th Asean Summit here yesterday. (source)
Our esteemed PM obviously has forgotten that majority of the rakyat will not fall within the tax bracket of 27% to enjoy the tax reduction of a grand 1%. It can be argued that most will enjoy the additional RM1,000 tax relief but does this justify a RM50 charge on our credit cards? Its like giving a baby candy only to take back part of it simply because the baby isn’t mature enough to eat the candy in small bites!
RM50 a year may not seem like a lot to some but it is to me and hence I’ll be cutting up most of my credit cards that have come with a “Free For Life” tagline. Perhaps our clever economic thinktanks might want to think of how this will impact the banking industry and flow of money when everyone starts cutting up their cards.
Its food for thought indeed. Will you be cutting yours? Or to quote an awfully terribly mangled advertisement on P1 Wimax: You Got Cut Or Not?!