John Cregan (Limerick West, Fianna Fail)
Link to this: Individually | In context

Question 259: To ask the Minister for Finance the situation in relation to start up and annual taxes, stamp duty on credit and debit cards; when these charges commenced; the number of cards which exist and annual revenue from same; the reason tax charge was raised in the first case; if such charges are made by other governments in the EU; if many complaints are received in relation to the charging system; and if he will make a statement on the matter. [27718/06]

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

The current annual rate of stamp duty on credit card and charge card accounts is €40. The stamp duty on ATM and debit cards is €10 per annum. In the case of combined cards (cards which have both ATM and Debit functions), the stamp duty is €20.

The Deputy will be aware that I introduced changes in this year's Finance Act to alter the way that stamp duty is charged on combined cards. The stamp duty on a combined card was reduced to €10 per annum where the card is only used for one function (either ATM transactions or debit transactions) throughout the year.

Stamp duty on credit / charge card accounts has existed since 1982 and stamp duty on ATM cards has existed since 1997. Stamp duty on debit cards was only introduced in December 2002.

The number of credit card and charge card accounts that were liable to stamp duty for 2005 was 1,596,499. In the case of debit and ATM cards, the number liable to stamp duty in 2005 was:

The yield from credit card / charge card accounts in 2005 was €63.8m.

The yield from stamp duty on ATM, debit and combined cards in 2005 was:

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 stamp duty applies irrespective of the volume of bank transactions made.

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.

I am not aware of any other EU Member States imposing taxation on financial cards.

I do not receive many complaints in relation to this stamp duty given the very large number of financial cards involved.