CARD TAXES:The Irish Banking Federation (IBF) has welcomed the decision by Minister for Finance Brian Cowen to cut the annual duties on credit, laser and ATM cards as "a step in the right direction".
The duty payable on credit cards is being cut by 25 per cent from €40 to €30, on combined debit-laser cards by 50 per cent from €20 to €10, and on ATM cards by 50 per cent from €10 to €5.
The change is being partly financed by an increase in the duty on cheques which double, from 15 cent to 30 cent per cheque.
In the 2008 Finance Bill, Mr Cowen will force financial institutions to make a preliminary payment equal to 80 per cent of the stamp duty liability on cards from the previous year. This will raise €60 million in 2008, but will not add any cost to card-holders.
The IBF said the reduced duties were "a welcome reduction in the cost unfairly borne by bank customers and a clear signal by Government of the importance of developing a modern payments system infrastructure".
IBF chief executive Pat Farrell: "We are the highest users of cash and cheques in the EU and we have to reduce this."
He said the wider use of electronic payments in Ireland could lead to cost savings of €1 billion a year.
He said the new charges left Ireland "well-positioned" for the Single European Payments Area, which is being set up under the EU Payment Services Directive. This will allow Irish people to use their debit or laser cards across the EU.
