Cowen urged to transfer €100m credit card duty to charities

A NUMBER of Fianna Fáil backbenchers last night called on Finance Minister Brian Cowen to transfer funds raised from stamp duty on credit cards to charitable organisations.

Thirteen TDs and senators tabled a motion at the Fianna Fáil parliamentary party, last night, seeking to earmark the €100 million raised annually for Irish charities.

The proposal is the brainchild of former KPMG accountant David Burke and is endorsed by personal finance guru, Eddie Hobbs.

The backbenchers last night asked Mr Cowen to consider the proposal seriously when framing his Budget for December 6.

A stamp duty of €40 is levied on all credit cards issued in Ireland, a duty that raises in excess of €100m annually for the Exchequer.

However, the Department of Finance is opposed to the delimiting or earmarking of revenues raised from particular duties or taxes. It argues that it reduces the discretionary powers of the Oireachtas and Government to decide on how revenues will be spent.

There are exceptions, however. Former Environment Minister Noel Dempsey passed legislation that transferred all the funds raised from motor taxes to the Local Government Fund.

Senator Margaret Cox from Galway said that the proposal had strong merits. “If the minister chose to redirect this tax to the charitable sector, there would be an immediate, significant benefit to all charitable organisations operating in Ireland,” she said.

Mr Burke said yesterday that some 200 charities in Ireland backed the plan.