Dáil Éireann Debate, Wednesday - 29 September 2004
282 Mr. Haughey asked the Minister for Finance the position regarding Government levies on credit cards and ATM cards; if students will be exempted from these levies; and if he will make a statement on the matter. [21349/04]
View answerStamp duty exists on various financial cards in order to provide Exchequer revenue. The stamp duty on cheques, bills of exchange and promissory notes has existed for many years and when electronic means of money transfers, such as credit cards, ATM cards and laser cards were subsequently introduced, stamp duty was gradually extended to these products to ensure that the stamp duty from cheques etc, were not eroded.
The current annual rates of stamp duty are as follows: credit card account and charge card, €40; ATM card without a laser function, €10; laser card without an ATM function, €10; combined ATM and laser card, €20.
There is no stamp duty payable in respect of ATM cards issued in respect of deposit accounts where the average daily balance on that account is less than €12.70.
Stamp duties on credit cards and ATM cards are significant contributors to the Exchequer and help to fund public services, such as health and education, and are in accordance with the overall taxation policy of widening the tax base in order to keep direct tax rates low, thereby helping job creation. In 2003 the stamp duty on credit cards, ATM cards and other cash cards issued by financial institutions contributed €84.31 million to the Exchequer.
If an exemption was introduced for one group of people such as students, there would be demands for similar treatment for others, and accordingly, there are no plans to introduce exemptions from stamp duty on such cards for any category of individual.
