Groups seek abolition of card tax

Three groups have launched a joint campaign to get the Government to abolish a stamp duty charge that costs consumers up to €40 a year.

The Irish Bankers' Federation (IBF), Consumers' Association of Ireland (CAI) and Chambers Ireland, want Minister for Finance Brian Cowen to drop stamp duty on ATM, credit and debit cards.

The three groups yesterday launched the Stamp Duty Out campaign, which has begun lobbying the Minister to abolish the charge on Budget day.

Consumers pay between €10 and €40 a year in stamp duty on the plastic in their wallets and purses, depending on the type of cards they use.

The Irish Payment Services Organisation (Ipso), which operates card payments and clearing houses for electronic payments, has already argued that the charge is not compatible with a single EU payments system.

The IBF's pre-budget submission states that the charge should be dropped. It argues that it is inconsistent with the Government's own policy of encouraging people to switch from cash to cheaper and more efficient electronic payment means.

It points out that the Competition Authority has already called for a review of such charges. IBF chief executive, Pat Farrell, said that in many cases it was the only charge paid by current account holders in the Republic.

"Given the enhanced customer proposition that has emerged as a consequence of increased competition we are calling for the remaining Government-applied consumer charges to be eliminated," he said.

Dermott Jewell of the CAI described the charge as an insult to consumers. "They represent an element of over-taxation - nothing more - and their abolition is too long overdue, and consumers know it," he said.

Chambers Ireland chief executive said the gains to the Exchequer were wiped out by the extra cost created by the fact that they delayed the roll out of credit cards. "Accordingly, Chambers Ireland believes that calls for the abolition of this duty are valid," he said.