Michael Ring (Mayo, Fine Gael)
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Question 553: To ask the Minister for Finance his views on reducing the annual duty charge on credit cards, debit cards and ATM cards as an incentive to encourage people to carry our more cashless transactions. [2218/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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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:

The stamp duty applies irrespective of the volume of bank transactions made. I do not believe that these changes are excessive and there is no evidence that they significantly discourage people from using these forms of transaction. In addition, section 128 of the Finance Act 2005 contained measures to eliminate a double stamp duty charge on the switching of financial cards. Stamp duties on financial cards are significant contributors to the Exchequer and are in accordance with the overall taxation policy of widening the tax base in order to keep direct tax rates generally low. In 2004, the stamp duty on ATM, laser and combined cards contributed €35.3 million to the Exchequer while the yield from credit cards was €59 million.

Michael Ring (Mayo, Fine Gael)
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Question 554: To ask the Minister for Finance the amount of tax the Government makes each year on credit cards, ATM cards, debit-laser cards and so on; and the figures for each year since this charge was introduced. [2220/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that separately identifiable figures of the yield of stamp duty on credit cards are available for the years 1996 to 2005, inclusive. For cash cards the relevant data available are from 1997 to 2005. This includes stamp duty on ATM cards from 1997 to 2005 and on debit cards and combined cards from 2003 to 2005.

The higher yields in 2003 and subsequent years are at least partly attributable to the introduction of stamp duty on debit cards and combined cards and increases in the duty applicable to credit cards and ATM cards.