Vol. 542 No. 4
129 Mr. N. Ahern asked the Minister for Finance his views on the apparently contradictory policy in the Department of Social Community and Family Affairs which encourages payments through the banks while the Department of Fin ance and the Revenue Commissioners charge an annual tax on the use of ATM and bank facilities; and if pensioners will be excluded from all bank charges. [24699/01]
I understand that the Minister for Social, Community and Family Affairs is replying to that part of the Deputy's question in relation to the matter of payments of pensions made through the banks.
On the question of ATM charges, the position is as follows: there is a £5 stamp duty charge on ATM cards. This charge was introduced in 1992 at a rate of £2 per cash card and was increased to the current rate in 1996. The duty is payable by a bank or building society in respect of each cash card which is valid during their accounting period. ATM cards are exempt from stamp duty where: (i) a card has not been used during the accounting period; and (ii) where in the case of any card issued in respect of a deposit account the average daily balance did not exceed £10.
This charge to stamp duty is levied on the financial institutions – and not on the individual – in respect of each valid ATM card account maintained by them. However, the institutions are entitled to, and usually do, pass on this stamp duty charge to the account holder. The yield for the year 2000 from this charge was £9.11 million. I do not propose at present to make any changes in this area.
