cards
Ireland’s Minister of Finance, Brian Cowen, gave development of
electronic payments a welcome boost when he delivered the national
budget in December. Cowen announced that with immediate effect,
stamp duty payable on all payment cards would be reduced
significantly, a move that was applauded by Irish banking and
commerce bodies as a long-awaited reform.
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On credit cards, annual duty payable was cut by 25 percent from €40
($58) to €30, duty on Laser cards (the main debit card system in
Ireland) by 50 percent from €20 to €10 and the duty on ATM cards by
50 percent from €10 to €5. Cowen revealed in parliament that in the
past tax year a total of €121 million in stamp duty was collected
on bankcards, up from €118 million in 2005.
Duty on cheques remains unchanged at €0.15 per cheque, a tax levied
when a cheque book is issued.
Commenting, John Dunne, CEO of Chambers Ireland, a body
representing 60 chambers of commerce, said: “We welcome the
rebalancing of charges on credit cards and cheques as an effort to
reduce transaction costs. This new policy direction – which has
been consistently called for by Chambers over the past number of
years – will release significant efficiencies in the wider Irish
economy.”
Echoing his view, Ireland’s banking industry body, the Irish
Banking Federation, said in a release: “The changes in stamp duties
payable by cardholders on ATM, debit and credit cards represent a
welcome reduction in the cost borne by bank customers and a clear
signal by government of the importance of accelerating the
development of our national payments infrastructure.”
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