Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - Stamp Duty.

Brendan Howlin

Question:

146 Mr. Howlin asked the Minister for Finance if he will exempt senior citizens from payment of stamp duty on automatic teller machine cards in light of savings to the Exchequer arising from the payment of old age pensions by direct credit to bank accounts; and if he will make a statement on the matter. [14164/00]

Minister for Finance (Mr. McCreevy):

The stamp duty rate per automatic teller machine, ATM, card is currently £5 per card. However, ATM cards are exempt from stamp duty where (i) a card has not been used during the accounting period, and (ii) any card issued in respect of a deposit account where the average daily balance did not exceed £10.

This charge to stamp duty is levied on financial institutions which offer these cashcard accounts. However, section 203(8) of the 1992 Finance Act entitles the promoters of these cashcards to charge the account holders the amount of stamp duty and the financial institutions usually pass on this stamp duty charge to their customers.

In 1999 the yield from this source was £8.8 million and this revenue permits the easement of taxes in other areas, most notably income tax, especially, as I have done in my last two budgets, on the elderly. I have no plans to introduce any exemptions in relation to this charge.