Saturday, October 24, 2009

Bad news for credit card users!

Budget 2010 brought along a bad news for credit card users. Now, the government will charge RM50 for every principal card and RM25 for every supplementary card! So, we have to return all our cards now...

It claimed that this is to promote prudent spending! What sort of crab is that! I hope the credit card company would absorb that RM50. Otherwise, my wallet will now be much thinner with less card. Perhaps this is a good thing.

Quote:
RM50 service tax for card holders
A SERVICE tax of RM50 will be imposed on each principal credit card every year beginning Jan 1.

For every supplementary card, a RM25 service tax will be charged yearly.

The move to impose this tax is to promote prudent spending as the use of credit cards is extensive. The number of cards increased from two million in 1997 to 11 million as of August this year. They exclude the 285,000 charge cards already issued.

Unquote
Source: http://thestar.com.my/news/story.asp?file=/2009/10/24/budget2010/4969248&sec=budget2010

14 comments:

Horlic said...

Hi William, thats really a BAD NEWS for every credit card holder! Need to cancel most of the credit cards soon. what to do? Malaysia Boleh!!!!

lasapka said...

now then i will see how ah beng show off their number of cards in wallet.

Cynthia said...

frankly speaking, I find this budget really a very 'dumb' ones.. I can't find any other words to substitute it!! sigh sigh.. when is our country really going to 'develop'? now I got to get ready to cancel all the cards I have.. leaving 1 which I have accumulated much points!

Gabriel said...

hmm...means now everyone needs to switch to debit cards then?

William said...

Horlic: Yea... Malaysia boleh! Because some of the people don't know how to control their spending, the government is now going to make a profit out of it!

lasapka: Ah Beng will use fake card now! Or name card!

Cynthia: It is very bad. I have so many cards given to us and now have to kill them all. So, if I go travelling, there is no more "insurance" - one card die, you have no more $$ leh!

William said...

Gab: LOL... what's a clever idea!

wenn said...

ya..debit card is good..but i still prefer credit card..i always pay on time..

Merryn said...

william, my hubs was just telling me about this. he just read the news and told me with some 'flowery' words jumbled up along it.. lol..

Janice said...

that's very stupid! haih. That's a lot of money! what an excuse it is to promote prudent spending! If they want to do that, they should charge more for the supplementary card instead of the principle card. Credit cards are quite useful nowadays coz some online payment accept credit card instead of debit card payments. tsk tsk tsk

Horlic said...

I prefer government to increase the requirement (say, monthly salary RM3k and above) for credit card application instead of charging Service Tax on each card holder. Really not fair for those with good payment record like us. SienzzzZzzz!

iriene said...

This is not acceptable..
I am in deep problem because I can't cancel those card, tied down by 0% payment scheme with some purchase..sigh! This is ridiculous..many good spender will cancel cards and this will dampen the whole retail economy. They should came out with better alternative.
Btw, done some G's here.
Do drop by my blog when u r online, cheers and have a great weekend :)

suituapui said...

I dunno if the credit card companies will absorb it or not...like how they waive the annual fees. If not, I'll just cancel my cards when the time comes.

Borneo Falcon said...

This new twist will also make life difficult for the bank sales personnel to sell credit card. It might even cost them their job.

Sarawakiana@2 said...

Give 500 ringgit to seniors and then get them to pay 25 or 50 for their credit cards---this is right hand give something and left hand take back...tak boleh lah...PM....still want to say Malaysia boleh?

or IMalaysia?

Now we really have to think twice about doing anything in Malaysia...