Dáil Éireann Debate, Tuesday - 22 June 2004
125 Mr. R. Bruton asked the Minister for Finance if he will consider removing the stamp duty on credit cards for old age pensioners to promote the use of cashless transactions and reduce the risk to older persons of carrying cash. [18530/04]
View answerThe stamp duty on credit card accounts is charged to the financial institutions, which in turn pass it on to their customers in the vast majority of cases. The stamp duty charged on a credit card account is now €40 per annum. The stamp duty arises irrespective of the age of the person holding the account.
I do not believe this charge is excessive in the circumstances and there is no evidence that it significantly discourages people from using this form of transaction. If an exemption were introduced for one group of people, such as the over-65s, there would be demands for similar treatment for others and the tax base could be significantly curtailed. I do not, therefore, intend introducing an exemption from the stamp duty concerned.
As the Deputy knows, the Government has done more for those aged 65 and over than many previous Governments. The income tax age exemption limits have been increased by approximately 135% since 1997, removing 81,300 elderly people from the tax net. The current rate of payment for old age pensions has increased by approximately 69% over the rate payable in 1997. This is well ahead of the rate of inflation and represents an enormous improvement in the living standards of our older citizens.
