RM50 Credit Card Charge - my take

You know what? I got better things to do and blog about than this. But this ticked me off I couldn't stand.

The Star Online, 25th October 2009

PM: RM50 for credit card not a big deal

Let me try to understand your point here.. To "promote prudent spending" (pg33), you're going to charge RM50 for each principal credit card, and RM25 p.a. on each supplementary credit card. The very first thing that comes to my mind is what a load of nonsense! Is the RM50 is supposed to be a deterrent for people who rake up thousands and thousands of dollars on their credit card? RM50 is but a joke compared to the amount of debt they rake. Overdue credit card fees, and exorbitant credit card interest rates are already there to deter every Tom, Dick, and Harry who knows how to count from spending like there's no tomorrow.

What pisses me off is not the charge, but the reason used to so call justify the charge. What aggravates it is the response by the Prime Minister, quoted

“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.

The Prime Minister, quoted in The Star Online, October 25th 2009

Whats the point of your tax relief if you're going to tax elsewhere? It's like saying no taxes on your house AND car, but we're going to increase your income tax. Oh, and you shouldn't complain because you get taxes off your 'house' and 'car' (see that's TWO things you get taxes off) but get taxed on your income (only ONE). And whether or not we can or cannot pay RM50 is really none of your concern. I am objecting based on principal. Even if you charge me RM1, I will object because it is rubbish.

In the end, who you're really hitting is the hardworking and responsible middle class who use credit card responsibly. If you really wanted to 'promote prudent spending' by penalty, you'd penalize only those who spend beyond their means - which banks are already doing. Even then, I am not sure more penalty is needed to 'promote prudent spending'. Think again.

From your average Tom, Dick, and Harry,

Logging off,
Lawrence Chong