Bertie Ahern (Dublin Central, Fianna Fail)

I move:

(1) THAT in this Resolution "Schedule 1" means Schedule 1 to the Stamp Duties Consolidation Act 1999 (No. 31 of 1999).

(2) THAT this Resolution shall have effect as respects bills of exchange drawn on or after 6 December 2007.

(3) THAT Schedule 1 be amended in the Heading "BILL OF EXCHANGE" by substituting "€0.30" for "€0.15".

(4) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for an increase in stamp duty on bills of exchange and is not a broader resolution. This includes an increase on cheques, from 15 cent to 30 cent. Stamp duty on the items in question has not been increased since the budget of 2003, when the charge was increased from 8 cent to 15 cent.

It is appropriate that the increase should be made at this time. There are two main reasons, the reductions made to stamp duty on financial cards announced today and the context of encouraging greater use of electronic means of payment. The increased rates of bills of exchange will apply to cheques supplied by financial institutions to customers on or after 6 December and for drafts and orders drawn on or after the same day.

Stamp duties on cheques, bills of exchange and promissory notes have existed for many years. When electronic means of money transfer, such as money transfers, ATM cards and debit and laser cards were introduced, stamp duty was gradually extended to those products to ensure the stamp duty receipts from cheques were not eroded. Credit cards first became liable to stamp duty in 1982, ATM cards in 1992, and debit cards in 2003. The rates of duty and their application have been amended on a number of occasions, most notably in the budget of 2003, when the duty on each financial instrument was increased. Regarding the changes now introduced to stamp duties applicable to financial cards, credit cards and cheques, the stamp duty rates on cheques and other bills of exchange are being increased from 15 cent to 30 cent. This is in accordance with the Government's commitment to move towards a system of e-payment and a reduction of cash-based payment. The reduction of stamp duty on financial cards, combined with the increase in the rate applicable to cheques, should serve this commitment. We have announced a number of reductions today; this is an increase and is part of a move to a paperless financial services industry.

See this speech in context