40 Euro GOVERNMENT TAX on Mastercard

alleepally

Yes, indirect taxes we all know about and we all live with them but at least when you buy something you know there is an element of tax there. There is a difference between a stealth tax (which this is) and indirect taxation.... The essential point with this tax is that you DO NOT have a choice in its payment. If I'm a motorist and want to protest against VRT I can choose NOT to buy a new car, thereby depriving the exchequer of the tax take. Not that 1 person will make a difference in such a case, BUT at least I have made the choice.....

"There's no tax on ATM cards. I'm not sure, but the €40 may be on ATM cards that are upgraded to laser cards. This is a whole different ballgame, and like credits cards, you won't get a laser card unless you can afford it. So the guy on disability probably wouldn't get taxed."

Unfortunately there IS a tax on ATM cards, it's €10. If you have laser on your ATM card as well, it's €20.... See, there's stealth tax in action - you didn't even know!!

Anyone with a bank account can have an ATM card, there's no criteria criteria there like there is for a credit card. So the social welfare/disability allowance recipient is charged the tax as well. Somehow, that just isn't right.

seamus

Indeed, I am mistaken. €10 is nothing though, regardless of how wealthy you are.

If I'm a motorist and want to protest against VRT I can choose NOT to buy a new car, thereby depriving the exchequer of the tax take. Not that 1 person will make a difference in such a case, BUT at least I have made the choice.....

You can also choose not to have a credit card or ATM card. The key is getting banks to tell you that these charges exist before you avail of the services.

Unfortunately there IS a tax on ATM cards, it's €10. If you have laser on your ATM card as well, it's €20.... See, there's stealth tax in action - you didn't even know!!

I'd never paid it, cos the bank thinks I'm still a student

Anyone with a bank account can have an ATM card, there's no criteria criteria there like there is for a credit card. So the social welfare/disability allowance recipient is charged the tax as well. Somehow, that just isn't right.

If they're on the dole or disability, they don't need an ATM card - they have plenty of free time during the week to go to the bank and withdraw their cash*


*Nobody take me seriously, please. If you're one of these people and can't poke fun at yourself, you need to lighten up

alleepally

Admittedly, €10 isn't a lot but stack 'em all together and you might have enough for a few late lunches for barristers at the Mahon Tribunal :-)

Much as I would like to send back my ATM card and take off the laser facility and give back a credit card, I need such things in running my business.


I'd look well paying for €200 lunches with cash in the Berkely now wouldn't I?... Oh my, the shame of it. dirty cash. **















@ I'm ownlee messin. I'm not rich. Even if I was, I'd always bring a hang sangwich for lunch and let the peasants (my employees) have the crumbs!

GerardKeating

Originally posted by capistrano
It's just ludicrous. Does anyone know of another country where there is a government tax on having credit cards and ATM cards? I don't mean bank charges - just state charges.

Other european countries also have some form of tax on plastic.

In fact, Italy is proposing a per transaction charge on credit cards, initially it will be 4 cent per transaction.

GerardKeating

Originally posted by tom dunne
Thats rubbish, I have one for the past number of years and they are accepted everywhere Visa/Mastercard are accepted. I can't remember the last time I was told an establishment didn't accept AA.

Try booking a flight with RyanAir with your Amex Card, they stopped doing taking them last year after having a spat with them over merchant charges.

American Express is not very attractive for merchants, the charges (from the card issuer) to the merchant are much higher than Visa/Mastercard.

Also Visa/Mastercard tend to settle daily with the merchant. Amex tend to pay the merchant weekly or monthly.

androphobic

seamus - you have paid it unfortunately:/ even students pay it as its a government tax, not a bank charge (if it was a bank charge we'd get away with it!). easy enough not to notice 10euro being taken though, as opposed to a nasty 40 on your credit card bill.

capistrano

Originally posted by GerardKeating
Other european countries also have some form of tax on plastic.

In fact, Italy is proposing a per transaction charge on credit cards, initially it will be 4 cent per transaction.

It would take the Italians! Credit Card use is already very low in Italy, and they want to make it even lower by taxing each transaction. I would have thoiught that they would want to see more electronic payments. Right now cash is most definitely king in Italy.

I suppose it's in Berlusconi's interest to keep the black economy going strong!

jesus_thats_gre

Originally posted by capistrano
Beware of what's next: tax on mobile phones? Boradband access?

Why not, it fits the pattern of easy money.

Considering the recent introduction of BIK tax and the fact that mobile phone or broadband bills paid for by an employer are not taxable under BIK, I would say you are wrong.

Going Demented

Got stuck with the E40 charge on MBNA and AIB visa. Was about to cancel the AIB one (dont use it, owe nothing on it) but they said i would still have to give them E40. So left it open and got charged the first week of april for it.

It's a pile of crap.

capistrano

Originally posted by jesus_thats_gre
Considering the recent introduction of BIK tax and the fact that mobile phone or broadband bills paid for by an employer are not taxable under BIK, I would say you are wrong.

I hope you are right. But taxing a mobile phone makes just as much (little) sense as taxing a credit card.

DaithiSurfer

so when should i cancel my AIB credit card in order that i get the full year worth of the tax i just paid and don't end up paying another years tax on it.
if that makes any sense

silent

if you have a CC now (past april 1st) you will be liable to pay 40E tax next year, it's charged after the year is over (to stop more outcry I guess) - tbh dunno how they want to charge you for that after you don't have your card anymore but I know AIB used to have a 40E cancelation fee which covered this I quess

seamus

Originally posted by DaithiSurfer
so when should i cancel my AIB credit card in order that i get the full year worth of the tax i just paid and don't end up paying another years tax on it.
if that makes any sense

As Silent says - Cancel it the last week in March 2005. You'll have to pay the €40 a second time no matter when you cancel it between now and 1st April 2005

NightStrike

So how is this 40 euro taken? Is it put on your card's credit card bill or immediately taken out of your account? For talk sake what would happen if you didn't have 40 in your account?

seamus

Originally posted by NightStrike
So how is this 40 euro taken? Is it put on your card's credit card bill or immediately taken out of your account? For talk sake what would happen if you didn't have 40 in your account?

You wouldn't pay it

It should appear on your bill as "Government Tax"

DaithiSurfer

The AIB credit card is going in march then. I think the MBNA one wins because better insurance than AIB. I never pay interest on the cards even though i use them all the time.

positron

I have an account with Barclays in the UK, and their debit card is Visa. I don't know if they would charge for it, but I am holding on to it hoping that they wont - I generally topup the Barlcays account now and then and use their card for internet shopping.

(I have an MBNA mastercard as well, which I think is worth it - for all those insurance on air travel etc)

ALLGOOD

I queried this E40 tax pretty fully with my bank and the govt as it felt like I was being robbed. I was told that the govt. would be introducing this tax to "aid the exchequer" as it would yield about 52m in one year. I was also told this tax was "modest" as there hadn't been an increase in credit card tax since 1992.