Ireland takes a step in the right direction

Delivering his national budget in October, Irelands minister of finance Brian Lenihan announced significant steps aimed at eroding the dominant position cheques and cash retain in the countrys payments system The most significant step is a 50 percent cut in annual stamp duty on ATM and Laser cards (Irelands main debit card system) from 10 ($13.50) to 5 The cut follows a cut in stamp duty on ATM and Laser cards from 20 to 10 and a reduction from 40 to 30 on credit cards implemented in December 2007.

Delivering his national budget in October,
Ireland’s minister of finance Brian Lenihan announced significant
steps aimed at eroding the dominant position cheques and cash
retain in the country’s payments system.

Irish payment system The most
significant step is a 50 percent cut in annual stamp duty on ATM
and Laser cards (Ireland’s main debit card system) from €10
($13.50) to €5. The cut follows a cut in stamp duty on ATM and
Laser cards from €20 to €10 and a reduction from €40 to €30 on
credit cards implemented in December 2007.

Adding further support to greater use of
electronic payments, Lenihan also announced that stamp duty on
cheques will be increased from 30 cents to 50 cent per cheque.
Stamp duty on cheques was last increased in 2005, from 15 cents per
cheque.

A step in the right direction but one that did
not meet calls for abolition of stamp duty on all payment cards by
organisations such as the Irish Bankers’ Federation and business
association Chambers Ireland. Organisations such as these have long
pointed to the huge cost burden on Ireland’s economy resulting from
high cash and cheque usage.

Fortunately calls for greater action on
promoting electronic payments have not gone unheeded.

In his speech Lenihan announced that a group is
to be established shortly to direct the preparation and
implementation of a national payments implementation plan over the
next two years.