The Malaysian Insider

I support the withdrawal of this tax. It is penalising the lower income groups including pensioners and retirees who have no source of income.

Well said, CM Lim! Thanks for voicing out the people's concern to the money-crazy PM.

LGE, do you think they will listen? The budget is causing more hardship for the lower income groups and we all know that. The credit card charge is one thing. The other more significant thing is stopping the provision of used car spare parts in mid-2011 and the annual inspection of cars more than 15 years old. We wonder if all the money reaped from these will end up in failed mega projects? The rakyat will express their heartfelt "thanks" to the BN government at the next GE. All PR need to promise the rakyat is to undo all these implementations when they come to power. The rest can be left to the rakyat at the polls. Promise for promise.

If there is a GE now, the BN will definitely lose lots of its seats to the opposition. Pity the Malaysians! I can afford to pay the RM50 tax but why should I. I feel its day time robbery.

Why must the government conveniently victimize the people for something that weren’t properly justified? Since the announcement was made during the 2010 budget, many parties had tried very hard to voice their grouses to the government over this matter but our Mr Prime Minister conveniently turn it down easily. Why must he turn a deaf ear to the rakyat’s grievances? Whenever people hold street demo, protest or anything, he loudly says that there are proper channel to voice grievances and not on the street. Now people are using the proper channel. The problem is does he listen? Is he acknowledging the people’s grievances?

Credit cards do not serve the purpose of spending only but credit cards can serve as life savers and financial security during bad times. A low income person may only be offered a low credit limit of RM3k-4k. Having 5 credit cards only gives him/her RM15K of ready cash in the card in case of any emergencies. i.e. medical or surgery. Now the government wants the people to reduce the number of cards by imposing the GST. The question is will the government assist the people with financial assistance during emergencies? How and when?

The government should study these few alternatives.

Implement a control via BNM to ensure all credit limits for credit cards are properly reduced. i.e. massive credit reduce exercise.

GST imposed only on Platinum Card since these are the higher income group of people and obtained higher credit limits.

Implementing higher service charges for cash advance withdrawal via credit cards or totally disable the function. Let alone the card to be used for purchase usage only.

Reduce all installment plan offered currently to a maximum of 6 – 9 months. This will also reduce huge spending on installment. Spending amount tend to go big when installment amount is small. Reducing the tenure will make installment amount look big hence the decision of spending for the item will be reduce eventually.

A proper control and screening on all balance transfer programs offered by the banks.

Information ministry should participate in contributing to TV and paper media to educate card spending from time to time.

If the government needs more revenue, collect motorbike road tax. Not as much as the credit card GST but amount still not small.

Instead of squeezing the rakyat to pay for the RM50 for the credit card. I think PM should cut the improper spending by the respective department from buying unnecessary things with unimaginable price e.g. 42K for a laptop and others. PM is not really understand the seriousness of the problem. No matter how much tax / money they collect, they just spend it like nobody. What is the point?

Your are absolutely correct!!

Agree with NCP. No point increasing tax revenue if they didn't control their own spending.

LGE just want to be popular again !! credit card is a bane and furthermore, the lower income should not have cards at all.

Bawal, I used to think credit cards are bane too, until I started using it to track and plan my expenses. I pay my monthly bills in full! What more the purchases are insured. And I don't need to carry lots of cash especially now that crime rate is so high. Visits to the ATM machines are also a risk these days. The government is wrong to say that credit cards promote excessive spending. Banks should be more selective in issuing out cards. Don't penalize people like me who use it for convenience and financial planning.

Me thinks if the issuing banks can engage third parties to market their credit card for them and paying those third party fellows at least RM30.00 per approved card issued to prospective card applicants, then I see no reason why the issuing banks cannot absorb the annual service tax imposed on the credit card by our so excellent government.

Just go to any hypermarkets and or any mega malls around the cities - you will find at least FIVE local banks represented by their third parties agents marketing the banks credit cards. You will find those third party guys (including gals) going all out to sign as many application forms as possible? Why? to make the RM30.00 commission, that's why! Those agents (without any connection to the banks, just 'commission agents', if that is the correct phrase) will promise you the sky and the moon.

The most common promise by those jokers are normally a percentage discount 'from such a such petrol station' normally at least 2 - 3 percent rebates if the potential clients use 'this bank's credit card for petrol purchase'. The is even one agent who promises we can claim at least 8% monthly rebates from all petrol stations selling Brand 'A', 'B', 'C' or 'D' petrol. Many people are being conned into signing into such scams, and finally discovered that to qualify one needs to pump in at least RM600.00 of petrol per month, and only from the petrol station that sells only ONE brand of petrol, and other Brands do not qualify at all!

I have been conned to signed for one at one recently open new Hypermarket in my hometown. Luckily for me, I make a quick call to the issuing bank and gave them a piece of my mind and have the said credit account 'tutup' with immediate effect, for their appointed agent (in this case, was a gal) dealing with me told me a-lot of LIES and many sweet promises that the issuing bank for the new credit card will offer me - a potential client! Too bad. The complaint has been lodged with the issuing bank, and that gal has been issued with a WARNING LETTER instructing her not to lie to potential clients like me.

If I had kept the card, because of 'greed' of a certain percentage rebate if I used that card for purchases at that hypermarket, then I stand to lose some more, and have to fork out an extra RM50.00 to pay for the annual service tax!

So, friends out there, should any third party agents representing certain banks approach you while you are shopping in your local hypermarket and shopping malls, beware of the scam. Just give them a BIG NO and just walk away. Don't be bother by their pestering, otherwise, you can tell them that you will use the credit card, but they make the monthly repayment for you using their own money. These agents are normally pests!

Many of us 'rakyats' hope that this important issue will be resolved at the most soonest possible time. And YB Lim, you have my ardent support! Thank you for your concern.