What's the BIG deal?
The govt thinks the new 2010 budget is "painless". I guess... it's only painless to them but not for the majority of us. If this is their idea of "painless", I really can't imagine when it's "painful"!!!
The highlights:
But of course the best "painless" budget that affect us, citizens was this:
My 2 cents worth on this point:
First of all, I don't know who came up with this ultra-brilliant idea of making the card users pay a service charge to the govt for using our credit cards issued by banks. If this is their idea of promoting prudent spending, the person behind this must be a genius! While every country is trying to induce more spending to boost the economy, our govt thinks that we should all cut down on credit cards!
While it is the banks' problem of trying to recover the debts, why is our govt so concerned about our private financial status? A "painless" budget is something that shouldn't affect us but this RM50 thingy really caught me by surprise.
Let's do a simple calculation: As of July 2009, 11 million credit cards have been issued out. This means that by 1st Jan 2010, assuming that no one is canceling any cards, the minimum collection the govt would receive is RM 550,000,000 which is half a billion! This is not inclusive of the coming credit cards issued between July to Dec.
I'm cutting mine. Are you?
Personally, I hold 4 credit cards. Someone I know holds 8 credit cards and my parents maybe 2 each. So, a person on average will hold at least 2 credit cards which add up to RM100 a year. A household with 5 person, assuming all are working will have to pay RM500 to the govt every year. I call this a robbery. Tell me, in this era, who doesn't have at least 1 credit card? With the current crime rate, do you expect us to go out with RM500 cash every day?
To add salt to the wound, the PM is seen quoting that "Don't tell me they cannot pay RM50?" at the 15th Asean Summit. Haha... I don't think he is in his right mind when quoting that! In the 1st place, when this is implemented, I had a feeling that many people would cancel some of the credit cards like me because I simply don't need to use 4 credit cards. This canceling of cards will affect the banks and then the credit card sales people. No one would want to simply apply for another credit card. Thus, if you're in this line, you better start looking for another job!
I think the banks should pay the fee. As they have been charging us interest, making money from retailers and other services, they should pay, not us! Why should we pay for using our own money?!! The govt should handle this tactfully. Why "punish" those whom only hold 1 or 2 credit cards (which is almost a necessity nowadays)? Tell me, who travels with only cash?!! They should only tax those with maybe 3 credit cards and above. Or impose a maximum RM50 for 2 credit cards from the same bank? There are so many alternatives but why do they have to be so cruel?
So, our PM think this is no big deal. I'm sure he doesn't know the sufferings of his rakyat. This is certainly what I call "robbing A to pay B". Is he fit to bring us to greater heights? I leave the answer to you.
The highlights:
- Those paying 27% tax will only need to pay 26%. Yeah, who does it benefit? Only to those who earns above RM100k/yr. That miserable 1%! Certainly I don't get anything out of this.
- And the other 2 tax reliefs (Personal relief increased to RM9,000 & EPF and life insurance schemes to be increased to RM7,000)...don't help much either.
- Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012. Yeah, not everyone has broadband you know?!!
- Police force to get RM1bil to improve its services in govt's efforts to reduce crime. Does that mean that I should stop paying the private security guards now?!! After so many cases of police being caught committing crime, can we still trust them?
- Employees' EPF contribution to be increased to 11% again, on a voluntary basis, effective immediately. However, from Jan 1, 2011 employees' EPF contribution will revert to 11%. Got nothing to do but to mess around with people's EPF every year.
But of course the best "painless" budget that affect us, citizens was this:
- To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.
My 2 cents worth on this point:
First of all, I don't know who came up with this ultra-brilliant idea of making the card users pay a service charge to the govt for using our credit cards issued by banks. If this is their idea of promoting prudent spending, the person behind this must be a genius! While every country is trying to induce more spending to boost the economy, our govt thinks that we should all cut down on credit cards!
While it is the banks' problem of trying to recover the debts, why is our govt so concerned about our private financial status? A "painless" budget is something that shouldn't affect us but this RM50 thingy really caught me by surprise.
Let's do a simple calculation: As of July 2009, 11 million credit cards have been issued out. This means that by 1st Jan 2010, assuming that no one is canceling any cards, the minimum collection the govt would receive is RM 550,000,000 which is half a billion! This is not inclusive of the coming credit cards issued between July to Dec.
I'm cutting mine. Are you?Personally, I hold 4 credit cards. Someone I know holds 8 credit cards and my parents maybe 2 each. So, a person on average will hold at least 2 credit cards which add up to RM100 a year. A household with 5 person, assuming all are working will have to pay RM500 to the govt every year. I call this a robbery. Tell me, in this era, who doesn't have at least 1 credit card? With the current crime rate, do you expect us to go out with RM500 cash every day?
To add salt to the wound, the PM is seen quoting that "Don't tell me they cannot pay RM50?" at the 15th Asean Summit. Haha... I don't think he is in his right mind when quoting that! In the 1st place, when this is implemented, I had a feeling that many people would cancel some of the credit cards like me because I simply don't need to use 4 credit cards. This canceling of cards will affect the banks and then the credit card sales people. No one would want to simply apply for another credit card. Thus, if you're in this line, you better start looking for another job!
I think the banks should pay the fee. As they have been charging us interest, making money from retailers and other services, they should pay, not us! Why should we pay for using our own money?!! The govt should handle this tactfully. Why "punish" those whom only hold 1 or 2 credit cards (which is almost a necessity nowadays)? Tell me, who travels with only cash?!! They should only tax those with maybe 3 credit cards and above. Or impose a maximum RM50 for 2 credit cards from the same bank? There are so many alternatives but why do they have to be so cruel?
So, our PM think this is no big deal. I'm sure he doesn't know the sufferings of his rakyat. This is certainly what I call "robbing A to pay B". Is he fit to bring us to greater heights? I leave the answer to you.
Posts
different countries seem to have different rules. in taiwan, the customers pay for the fee. in america, the merchants pay for the fee. i don't know about the rest of countries. in all cases, the banks make the profit.
there have been too many by-elections. each time, tens of millions were promised. now we have to pay for the promise made by BN
Anon: I knew that was coming and I knew the govt is running out of money!
I cut it too....
Hey, that sounds like some broadband ads....
Will only keep 1 debit and 1 credit card.
Brilliant govt.
you've just hit the nail on the head on the credit card issue. dumb-ass politicians....
planning to cut some card as well . . .been holding some that I have not even use but once. . .imagine paying for a box of cigar with cash. . .damn
I'm cutting mine. I have 4. I'm sticking to just 1. Damn! 200 does hurt!
You aren’t see nothing yet, wait til GST is introduced.
sorry dear....i supposed that our PM is usually not in the right mind all the time....and BTW...u was standing so near to him during the trade not long ago...didn't you find something wrong then??cheers...
I think the lower income tax bracket should be reduced instead of the top though, but the credit card thing is not necessarily a bad move. lol
Credit card is free in Singapore, and in many countries. We even call the customer service to waive off our annual charges.
What business is it of our government to poke their nose into this?
I think the PM is an idiot for making that statement.
I'm sure there's some vague and obscure law tied into Bank Negara that allows them to do that, or they can always draft a new one.
However, it's not right to call this "promoting prudent spending" and they shouldn't be telling me what is prudent and what isn't.
Good move on the broadband though.
Sckhoo: Yeah sounds like the p1Wimax ad!
Anon: That's why we will never move forward.
Foodcrazee: The cigar retailer would be so happy!
Cibol: I'll keep 2 la. Just in case.
Anon: I heard that they will want to implement that as well. Maybe next year?!! haha...
Painter: I don't know. Only seen him once!
KY: Cos the ones whom are paying taxes are the lower & middle income groups! Don't you know that?!!
ShingoT: Our govt is "special"!
Huai Bin: Err our PM is never smart.. how many credit cards do you have? I've seen your latest credit card statement! hmm...
Fuck I have a few but with this RM 50 bullshit I'll have to just keep it to 2 max. I wonder if they charge for each card despite the fact that it's from the same bank e.g. Visa and Mastercard from PB.
Ya that statement is from the card I use regularly (it's the bank where my salary goes into). T_T
Thankfully my Alliance Bank credit card is over 1 year coz I never use it. I only signed up coz my friend needs the commission. You're right it's gonna hit the bank people, who works hard to get sign ups and there is a min time you have to be on it for them to get the commission. Boosting the economy my ass.
Huai bin: I think they will still charge RM50 for each card even if it's from the same bank! So nice of you to help your friend!
I think those paying 27% tax should not be reduced to 26%. For what? They are so rich already! And why benefit the minority?
And I totally agree with you on the credit card issue. Why must we pay the RM50? What did we do to deserve this?
Like you said, maybe only charge those who have 3 cards and more. Since everyone should have at least 1 credit card.
The gomen is not encouraging a cashless society like other country. Use Touch N Go to pay parking have to be charged 10% more bloody hell. Now use credit card also have to be charged with tax. The gomen expect us to bring thousands of cash to shop is it? My friend like to collect credit cards, he have like more than 10 lol. Now he'll have to cancel a few of them.
Foongpc: The only thing we did was not voting properly!
Simon: Cos our govt wants to help us to save money. Don't want to bring out so much cash, then don't shop lo... like usual la, most of our politicians are brainless lots.
already quite a good review on the measure that is going to affect us most! :)
banks are going to allow card users to utilise points to pay for this... trust me ;)
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