Phasing out of physical cash would be a boost to our economy

GIVEN the necessity for successive stringent budgets, including expansion of the taxation net, I have a proposal for Finance Minister Michael Noonan — consider starting to phase out physical cash in the next five years.

Phasing out of physical cash would be a boost to our economy

This is one way of boosting tax revenue as currently businesses which deal primarily in cash, some of which are thriving in the black economy, will be obliged to conduct transactions exclusively using cheque, bank draft or credit/laser card payment options, exposing them to the operational remit of the Revenue Commissioners.

A full review should be commissioned by the Department of Finance to explore the viability of this policy.

There are potential drawbacks to such a policy — the invasion of privacy (every person is obliged to have a bank account), logistical complications, adjustment for tourists, protests and financial costs — however the advantages may outweigh the disadvantages.

By doing this, we would be: boosting government revenue; reducing social welfare queues of those simultaneously working full-time in cash businesses; creating conditions for fair competition in the economy (compliance for tax evaders, protection for tax compliant operators); and creating spin-off employment by establishing a helpline to assist the public in this transition (educational literature and a support website would also be required).

We would also be helping graduates of cyber crime courses qualified to counteract the inevitable attempts at hacking into accounts; and tackling cash-bribery and corruption in society.

Also worth the finance minister’s consideration is the development of advanced credit/laser card technology for the purpose of curtailing fraud and eliminating transactions following the theft of a card.

Travis Gleasure

Tralee

Co Kerry

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