Dáil Éireann díospóireacht -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Tax Exemptions.

Mary Upton

Ceist:

234 Dr. Upton asked the Minister for Finance if he will exempt old age pensioners from the ?40 levy on ATM cards and credit cards in view of Government policy to encourage elderly people to use financial institutions instead of keeping money at home; and if he will make a statement on the matter. [18648/03]

Minister for Finance (Mr. McCreevy):

The stamp duty on ATM cards and 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 an ATM card is now €10 per annum, while an ATM card with a Laser facility is €20 per annum. A credit card account incurs an annual charge of €40. The stamp duty arises irrespective of the age of the person who holds the card or account.

I do not believe that these charges are excessive in the circumstances and there is no evidence that they significantly discourage people from using these forms of transactions. If an exemption was 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.

As the Deputy is aware, the Government has done more for the over 65s than many others. The income tax age exemption limits have been increased by over 150% since 1997 removing 77,100 elderly people from the tax net.

I would also point out that the current rate of payment for old age pensions has increased by 59% 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. I do not, therefore, intend introducing exemptions from the stamp duty concerned.