I know this will not come in to play until next april again but why do we pay a tax of 30.00 euro for having a credit card, We pay enough to the credit card company if we owe money on it but can anyone remember the reason given for paying a tax on it, The CC company gave it to me to make money from me at some point so what has government got to do with it, Will I be taxed for having an x-tra vision card next, I can not figure this one out.
Credit card tax
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The_Banker
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Wasnt this tax imposed by McCreevy in the early 00s when he believed that the economy was ramping up and he was "concerned" that people were over spending and thus overheating the economy and he wanted to calm things down? At least that was the excuse used.
If that was the reason for the tax then with the recession (depression??) it would be a good idea to abolish it to try and ramp up the economy now...
Is there not a smaller charge of €5 also on Visa Debit cards? Correct me if I am wrong but I dont believe any other country in the world have a tax on credit cards.
But essencially Purple is correct above... The government do it because they can.
If that was the reason for the tax then with the recession (depression??) it would be a good idea to abolish it to try and ramp up the economy now...
Is there not a smaller charge of €5 also on Visa Debit cards? Correct me if I am wrong but I dont believe any other country in the world have a tax on credit cards.
But essencially Purple is correct above... The government do it because they can.
Yes - this is one of mcCreevey's leavings. Introduced first in 1999 (Stamp Duties Consolidation Act 1999), he then increased it in 2003 before waltzing off into the EU.
It started off as follows:
1999: Debit Card: £5, Credit Card: £15
and has been changed several times since.
I think McCreevy though took it to its highest point in 2003 (€40) before he left.
While I am not a particular fan of this tax, one thing I have certainly noticed is that Irish people seem much less likely to have multiple cards, particularly multiple credit cards. Personally I see that as no bad thing as I have witnessed people literally juggling their credit cards trying to keep them all afloat but never really dealing with the underlying debt. Much less attractive an approach if you have to pay for the privilege of each card!
(Oh and The_Banker, going by Google, it looks like Sri Lanka also have stamp duty on cards)
It started off as follows:
1999: Debit Card: £5, Credit Card: £15
and has been changed several times since.
I think McCreevy though took it to its highest point in 2003 (€40) before he left.
While I am not a particular fan of this tax, one thing I have certainly noticed is that Irish people seem much less likely to have multiple cards, particularly multiple credit cards. Personally I see that as no bad thing as I have witnessed people literally juggling their credit cards trying to keep them all afloat but never really dealing with the underlying debt. Much less attractive an approach if you have to pay for the privilege of each card!
(Oh and The_Banker, going by Google, it looks like Sri Lanka also have stamp duty on cards)
The_Banker
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Its good to see that we are at least as progressive as Sri Lanka so-crates 
It probably is a bad idea for people to have multiple cards but I dont think we as tax payers should have to endure a tax just because some people are irresponsible with regard to the personnal credit.
Also, it this day and age everyone needs some form of card with banks putting towards electronic banking and one is required if you want to make an online purchase (easily)
It probably is a bad idea for people to have multiple cards but I dont think we as tax payers should have to endure a tax just because some people are irresponsible with regard to the personnal credit.
Also, it this day and age everyone needs some form of card with banks putting towards electronic banking and one is required if you want to make an online purchase (easily)
Multiple cards are very handy for anyone who travels regularly. Pretty much everytime I go to the US, at least one of my (2) credit cards will be declined at some stage so it is nice to have back up while you get things sorted. I got the second card after a rotten experience trying to check into a hotel at 4am Irish time after a 21 hour journey and having my (only) credit card declined.
I've no major problem with the tax (they'll get it from me somehow so whether it's income tax, property tax, VAT, stamp duty doesn't really matter) but I think it should maybe just be charged on the first card so it's a per person thing. I don't think it's applied to control mad credit card spending - as others have said, it's there because it can be.