The Consumers’ Association of Ireland (CAI), the Irish Bankers Federation (IBF) and Chambers Ireland (CI) are jointly calling on the Government to abolish stamp duty on debit (Laser), ATM and credit cards in the forthcoming Budget. In an unprecedented initiative, the representative bodies for banks, consumers and business have joined forces to call time on these stamp duties which range from €10 to €40 per year depending on the card used.

The Consumers’ Association of Ireland (CAI) fully supports the call for all stamp duties to be removed from bank cards, as reflected in its pre-budget submission. CAI’s Chief Executive, Dermott Jewell, states:

“These duties, when introduced, were unrealistic and were specifically anti-consumer in nature. Their continuation only adds to the initial insult and provides nothing for the consumer except to shine a light upon their stark inadequacy in an environment promoted and evolved to provide for a cashless society. They represent an element of over-taxation – nothing more – and their abolition is too long overdue; and consumers know it.”

The case for the abolition of these stamp duties is a central theme of IBF’s pre-Budget submission. In IBF’s view they act as a direct disincentive to customers switching from cash to more efficient means of payment, as envisaged under the Government’s own National Payments Strategy. And, referring in its 2005 report on the retail banking market to their “distortionary costs”, the Competition Authority called for a full review of such duties.

“Stamp duty on ATM and payment cards is, at this point, the only cost attaching to current accounts for many Irish consumers, as more and more providers have begun to offer free transaction accounts to customers. Given the enhanced customer proposition which has emerged as a consequence of increased competition – itself underscored by the success of the IBF Account Switching Codes – we are calling for the remaining Government-applied consumer charges to be eliminated”, states Pat Farrell, IBF Chief Executive.

The abolition of stamp duty on credit cards is also a feature of the Chambers Ireland (CI) pre-Budget submission. Its Chief Executive, John Dunne, states:

“The revenue generated from credit card stamp duty is offset by the hampering impact that such duties have on the roll out of credit cards - which are a vital requirement in facilitating e-payments and e-commerce in wider Irish society. Accordingly, Chambers Ireland believes that calls for the abolition of this duty are valid.”

The Irish Payment Services Organisation (IPSO) continues to campaign actively for the abolition of card stamp duties. As the umbrella body for payment services for financial institutions in Ireland, IPSO is particularly concerned that such duties are untenable in the context of the development of the Single Euro Payments Area (SEPA).

CONTACT:

Dermott Jewell : 01 – 497 8600
Consumers’ Association of Ireland
43-44 Chelmsford Road,
Ranelagh
Dublin 6.