Consumers who switch bank accounts will continue to be penalised by Government stamp duty rules until January 2006, it emerged in the Finance Bill.

Consumers who move to a new current account provider during 2005 will still be obliged to pay an additional €10 duty on their new ATM and debit (laser) cards, adding €20 to the cost of moving current accounts for a consumer who holds both cards.

The delay on the reform of the stamp duty regime, which had been widely viewed as anti-competitive, was announced just three days after a new industry code of practice designed to make it easier to switch current accounts came into effect.

Mr Felix O'Regan, spokesman for the Irish Bankers' Federation (IBF), said the new legislation required banks to make several changes to their internal systems and processes.

The removal of the double charge on ATM and debit cards has also been postponed because the Government is requiring the banks to synchronise the date on which they deduct the stamp duty on its behalf.

From next year, all banks will deduct the charges on December 31st. At the moment, each individual bank deducts the charge at the end of their own financial year.

The tax will become a "point in time" charge, meaning only the financial institution at which consumers bank on that date will deduct the stamp duty.

Over recent weeks, Permanent TSB and Ulster Bank have both announced fee-waiving initiatives in a bid to increase their share of the current account market following the introduction of the IBF's switching code.

It is thought that some banks may agree to pay the stamp duty on ATM and laser cards on behalf of customers to encourage account switching.

Meanwhile, credit and charge cardholders who switch cards during the year will no longer face a double stamp duty charge from April 2nd.

However, consumers who switched to a new credit or charge card since last April or who switch between now and April 2nd may still have to pay the €40 charge twice.