Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 198: To ask the Minister for Finance if he will exclude persons over the age of 66 from the €40 credit card and the €10 ATM Government levy; the cost of such a measure; and if he will make a statement on the matter. [17106/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Stamp 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 were subsequently introduced, stamp duty was gradually extended to these products to ensure that the stamp duty from cheques etc. was 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; and combined ATM and laser card —€20. The stamp duty arises irrespective of the age of the person who holds the account. I do not believe that these charges are excessive and there is no evidence that they significantly discourage people from using these forms of transaction.

I am informed by the Revenue Commissioners that, as the stamp duty charge on credit and ATM cards is not affected by the age of account holders, such information is not provided by financial institutions in their annual returns to Revenue. There is, therefore, no statistical basis on which the estimate requested by the Deputy can be provided. Stamp duties on credit cards and ATM cards are significant contributors to the Exchequer, 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. In 2004, the stamp duty on all financial cards contributed €94.3 million to the Exchequer. There are no plans to introduce exemptions from stamp duty on such cards for any category of individual.

As the Deputy knows, this Government has done much to help those aged 65 and over. The income tax age exemption limits have been increased by about 150% since 1997 removing 75,500 elderly people from the tax net. In addition, the current rate of payment for old age pensions has increased by more than 80% over the rate payable in 1997. This is well ahead of the rate of inflation and represents a very significant improvement in provision for our older citizens.