Claire Kerrane (Roscommon-Galway, Sinn Fein)
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253. To ask the Minister for Finance if he will provide details of the mandatory charge that the Government applies to customers closing accounts with a bank (details supplied); if a charge is in place, the reason this is the case in this particular situation; and if he will make a statement on the matter. [18217/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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In the absence of more complete information, and in light of the fact that the annual stamp duty charge for a credit card account is €30, I must assume that the "accounts" referred to in this question are credit card accounts. No stamp duty charge of that amount applies in respect of other types of bank account.

I am informed by Revenue that there is no Government charge for closing a credit card account. However, and for the reason outlined above, on the assumption that the question relates to section 124 of the Stamp Duties Consolidation Act 1999 which provides for an annual stamp duty at the rate of €30 to be charged on credit card accounts, I can confirm that the charge under section 124 is applied where a credit card account is maintained with a financial institution at any time during the 12-month period ending on 1 April in any year.

The €30 charge applies to the account and not to the card - the number of cards issued to that account are not relevant. Stamp duty is charged to the account on 1 April each year in arrears unless the account is closed during the year. If the account is closed during a year and the card is cancelled, this will result in the €30 charge to stamp duty being applied on the date of closure.

Where an account is closed and a stamp duty charge is applied, the financial institution should provide the account holder with a letter of closure, provided he or she has paid the €30 charge. In such circumstances, if the account holder opens a new account with another financial institution, he or she will not have to pay a stamp duty charge on the 1 April following the account closure if he or she presents this letter to the new financial institution.

Revenue has published guidance on stamp duty on credit and other financial cards on its website, which is available at Stamp Duty on financial cards (revenue.ie).

On the wider matter of bank charges, the charging of fees is a commercial decision for regulated entities, within the parameters of the regulatory framework. This requires, under Section 149 of the Consumer Credit Act, 1995 (as amended), that credit institutions must notify the Central Bank if they wish to:

- Introduce any new customer charge for providing certain services; or

- Increase any existing customer charge for providing certain services.

As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis.

I hope this clarifies the matter.