Brendan Howlin (Wexford, Labour)
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Question 78: To ask the Minister for Finance if he will consider exempting senior citizens from the annual Government levy of €10 per ATM card, €20 per laser card, by way of encouragement not to keep cash in the home; and if he will make a statement on the matter. [20493/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp duty exists on various financial cards 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:

The stamp duty arises irrespective of the age of the person who holds the account. I do not regard these charges to be excessive, and there is no evidence they significantly discourage people from using these forms of transaction.

Stamp duties on ATM, laser and combined cards are significant contributors to the Exchequer and are in accordance with the overall taxation policy of widening the tax base to keep direct tax rates low. In 2004, the stamp duty on ATM, laser and combined cards contributed €35.3 million to the Exchequer. I have no plans to introduce exemptions from stamp duty on such cards for any category of individual.

As the Deputy knows, the Government has done much to help those aged 65 and over. The income tax age exemption limits have been increased by approximately 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% above 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.