Dáil Éireann Debate, Thursday - 6 July 2006
272 Mr. Lowry asked the Minister for Finance the rate of stamp duty rates on cheques and laser cards with ATM function; the number of ATM cards and credit cards each year since 2002; the income to the exchequer each year on each; to review these rates; if consideration will be given to removing the stamp duty on each; and if he will make a statement on the matter. [27913/06]
View answerThe rate of stamp duty on cheques is 15c per cheque. The rate of stamp duty on debit cards (laser) with an ATM function (combined cards) is €20 per annum.
The Deputy will be aware that I introduced changes in this year's Finance Act to alter the way that stamp duty is charged on combined cards. The stamp duty on a combined card was reduced to €10 per annum where the card is only used for one function (either ATM transactions or debit transactions) throughout the year.
The number of ATM, combined and debit cards chargeable to stamp duty for 2002 et seq. is:
|
Card Type |
2005 |
2004 |
2003 |
2002 |
|
ATM |
1,992,615 |
2,240,090 |
2,105,152 |
2,169,591 |
|
Combined |
1,012,147 |
642,985 |
587,976 |
458,119 |
|
Debit |
57,437 |
255,952 |
244,167 |
178,165 |
|
Totals |
3,062,199 |
3,139,027 |
2,937,295 |
2,805,875 |
The number of credit card/charge card accounts liable to stamp duty for 2002 et seq. is:
|
Card Type |
2005 |
2004 |
2003 |
2002 |
|
Credit Cards |
1,433,585 |
1,340,411 |
1,177,759 |
1,093,011 |
|
Charge Cards |
162,914 |
133,442 |
113,913 |
109,491 |
|
Totals |
1,596,499 |
1,473,853 |
1,291,672 |
1,202,502 |
The yield to the Exchequer for each year is:
|
Year |
Credit/charge cards |
ATM/debit cards |
|
€m |
€m |
|
|
2002 |
51.7 |
32.64 |
|
2003 |
22.9 |
14.04 |
|
2004 |
59.0 |
35.25 |
|
2005 |
64.8 |
36.9 |
All stamp duties, including the stamp duties on financial cards and bank transactions are reviewed in the context of the annual Budget and Finance Bill.
273 Mr. Lowry asked the Minister for Finance the rate of vehicle registration tax on each category vehicle since 2002; if consideration will be given to reducing the level of VRT in the next budget; the reasons to date for not reducing VRT; if VRT will be eliminated completely over a five year period; and if he will make a statement on the matter. [27914/06]
View answerThe rates of VRT on each category vehicle are as follows: Private Cars
|
A1 Cars under 1,400cc |
22.5% of Open Market Selling Price — OMSP |
|
A2 1,400 to 1,900cc |
25% of OMSP |
|
A3 Cars over 1,900cc |
30% of OMSP |
|
Small vans and some jeeps |
13.3% of OMSP |
|
Other Vehicles |
€50 — flat rate |
In Budget 2003, the band to which the highest VRT rate (30%) applies, was widened to include cars between 1901cc and 2000cc inclusive (these had previously been taxed at 25%).
The VRT rates and bands are reviewed in the annual Budgetary process. For example, in last year's Budget, I introduced a 50% VRT relief for flexible fuel vehicles and a similar relief was already in place for hybrid electric cars. I have no plans to introduce a general reduction of VRT.
As for the elimination of VRT over a period of time, I have no plans at present to do so. The European Commission published a proposal for a directive in relation to car taxes in July 2005 which supports the gradual abolition of registration taxes which it believes impacting on the functioning of the internal market. However, the aim of the proposal is that such registration taxes would be replaced by circulation taxes which would have a CO2 element.
At EU Council discussions, Ireland has pointed out that we regard VRT as a national tax that falls within the national competence — a position shared by several other Member States. Our view is that the mix of taxes, their levels and rates are matters for EU Member States based on legitimate choices.
Within the EU Single Market, the facility is available for Member States to raise revenue through internal taxation subject to certain provisos such as the following:
(1) the measures do not give rise to border controls,
(2) there is no discrimination as between home produced goods and those imported from other Member States, and
(3) the measures are not of the nature of quantitative restriction on imports or exports.
VRT has been examined by the European Court of Justice and has been found to be compatible with EU legislation. Motor vehicle taxes have been a traditional source of revenue in Ireland for decades and provide significant revenue to the Exchequer which is used to fund vital public services. For example, VRT yielded approximately €1,149 million in 2005. As regards the balance of taxation, Ireland has prioritised tax reductions on income earned by employees, in preference to other tax areas, and this policy has helped create record employment levels.
