Minister for Finance Brian Cowen is coming under pressure from Fianna Fáil TDs and Senators for a change in the budget to redirect €100 million in annual revenue from tax on credit cards to charities and the voluntary sector.
A motion signed by 15 Fianna Fáil TDs and Senators and due for debate at the parliamentary party calls on Mr Cowen to introduce legislation to take the credit card stamp duty from the exchequer and give it to charities "to greatly benefit the Irish charity sector and positively impact on Irish society".
One of the motion's signatories, Senator Margaret Cox from Galway, said if Mr Cowen redirects this tax to charities, it would be a significant benefit to all charitable organisations in Ireland. "All charities in Ireland are playing an essential role in today's world and we need to support their tireless efforts," she said.
Last month, a lobby campaign headed by former accountant David Burke published a plan calling for the €40 per card stamp duty to be geared towards a registered charity or sports organisation.
In research accompanying the plan, Mr Burke said he identified numerous areas where tax revenue is ringfenced. They include the Horse and Greyhound Racing Act, which redirects up to €200 million a year to Horse Racing Ireland and Bord na gCon.
At the time of the launch of the campaign a spokeswoman for the Department of Finance said the proposal was being examined in the context of the forthcoming budget. Senior department officials examining the issue have expressed interest in the initiative, but have voiced concern that tax revenue could be ringfenced, creating an unwelcome precedent. Among the charities that have officially supported the proposal are Barnardos. Its chief executive, Fergus Finlay, said it would have a direct impact on people who needed support.
He said the cost to the exchequer would be minimal and it would encourage financial institutions and credit card service providers, many of whom already give generous support to Irish charitable efforts, to develop further and stronger partnerships.
Mary Davis, chief executive of Special Olympics Ireland, also supports the move and said the €100 million could make a vast difference to many people's lives.
The motion has been signed by TDs Charlie O'Connor, Cecilia Keaveney, Michael Mulcahy and Joe Callanan and Senators Margaret Cox, Labhras Ó Murchú, Francis O'Brien, Kieran Phelan, Timmy Dooley, Diarmuid Wilson, Geraldine Feeney, Paschal Mooney and Eamon Scanlon.