Government starts consultation on stock market trades stamp duty
Paschal Donohoe seeks feedback on alternative revenue sources
Stamp duty consultation: Minister for Finance Paschal Donohoe, pictured at The Irish Times PwC Tax Summit. Photograph: Nick Bradshaw
Minister for Finance Paschal Donohoe has launched a public consultation on the future of Ireland’s stamp duty on stock market trades, a year after his predecessor committed to carrying out a review of the regime.
The Government currently charges a 1 per cent rate on share trading in Irish companies on the main exchange, though it moved earlier this year to exempt trades on the junior stock market in Dublin from the duty.
The UK has a 0.5 per cent stamp rate on purchases of more than £1,000, while the levy in France and Italy is 0.2 per cent.
The Irish Stock Exchange has been lobbying for years to lower the Irish rate to the UK one, at a minimum.
“This consultation provides an opportunity for interested parties to input their views to my Department’s review of the stamp duty regime that applies to share transactions in Ireland,” Mr Donohoe said on Friday evening. “This is another element of our on-going examination of the changing financial and economic environment in the context of Brexit.”
Among the questions the Department of Finance is seeking feedback on includes whether there is any evidence that a reduction or elimination of the duty will result in an increase in the availability of equity finance for listed companies.
It also wants respondents to address “what alternative revenue streams from the financial services area or elsewhere could be considered to replace the revenue forgone in the event of a reduction of stamp duty on shares”.