Government tax on closing visa card account

E

E2005

Guest
Hi All
Has anyone heard of a €30 government tax on closing a credit card account? I know there is an annual government tax which I have already paid but when I went to close my AIB account they said that there was another €30 government tax to pay? Is this legit?
Thanks
E2005
 
I think so MBNA say the same, they say you should cancel by the end of March in order to pay the one Gov tax, because it is passed March you have to pay the Gov tax for year 2009/2010.
 
Yes, it's the same tax - Government Stamp Duty is payable on a credit card annually on 1st April or on closure of the account. The €30 you paid in April was in respect of the year 2008/09 and the €30 you're being charged on closure is in respect of 2009/10.

If you're switching credit cards, you should get an exemption letter from AIB, give it to your new CC provider and you won't be charged the GSD for 2009/10 again next April.
 
Thanks, that answers the question. I thought they were trying to charge me an additional €30 for closing the account but if its the tax for next year thats OK.
 
Hi E2005, I have just closed my mastercard, and the tax is not for next year, its just a government tax for closing it, so i am not happy about it at all, why should they get tax, when i finally get after 6 years of interest to close my account?
 
it's not a tax for next year or for closing your account, it's a stamp duty on having the card at any time after march 31st, as stated above if you are getting a new credit card at any time before next april 1st (2010) you can use the letter that they will provide you with so that you will not have to pay the stamp duty again.