Vol. 566 No. 3
219 Mr. F. McGrath asked the Minister for Finance his views on a complaint (details supplied) regarding stamp duty on credit cards; and his further views on whether compliant taxpayers are constantly paying extra for services. [12891/03]
224 Mr. Haughey asked the Minister for Finance the stamp duty charged on credit card accounts; his views on whether it is appropriate for a credit card company to inform a customer who was billed in April ?40 stamp duty and who telephoned to close the account due to this, that further stamp duty in these circumstances will be immediately imposed for the year 2003-04 even though the account would not be in use; the reason for this; and if he will make a statement on the matter. [12938/03]
I propose to take Questions Nos. 219 and 224 together.
Last December I announced in my budget speech a number of increases in the stamp duty charges on various financial products such as ATM cards, laser cards, credit cards, cash cards and cheques. These changes are estimated to yield a total of about €52 million in a full year.
Stamp duty is a significant contributor to the Exchequer. It helps to fund public services while keeping the direct tax burden low thereby facilitating continued economic success.
These changes have been legislated for in section 140 of the Finance Act 2003. The Act's changes, particularly the inclusion of certain anti-avoidance measures, have given rise to representations of the kind mentioned in the questions.
I have asked my Department to examine the issues which have arisen bearing in mind the need to secure the revenue to the State arising from the changes to stamp duty. This examination is in progress.
