EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 10 December 2015  
relating to stamp duty on cash withdrawals from automated teller machines  
(CON/20 15/55) 
 
Introduction and legal basis  
On 20 October 2015, t he Irish Minister for Finance formally presented the Finance Bill 2015 ( hereinafter 
the ‘draft law ’) to Dáil Éireann, the lower house of the Oireachtas  (the National Parliament) . The 
European Central Bank (ECB) has not been consulted by the Irish authorities on the draft law.  
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first and second indents  of Article  2(1) of Council Decision 
98/415/EC1, as the draft law relates to currency matters and means of payment . In accordance with the 
first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing 
Council has adopted this opinion.  
 
1.  Purpose of the draft law  
Section 61 of the draft law amends  the existing Stamp Duties Consolidation Act 1999 , to replace the 
current flat rate stamp duty charge on cash, debit and combined cards as of 1 January 2016 with a 
charge on cash withdrawals using these cards from automated teller machines ( ATM s) in Ireland. Each 
such cash withdrawal will be char ged EUR 0.12 , but the annual charge will continue to be capped at  a 
maximum of  EUR 2.50 for single function (i.e. cash or debit ) card withdrawals and EUR 5 for combined 
(i.e. cash and debit) card withdrawals.  The purpose of the draft law is to encourage gr eater use of 
electronic methods of payment in Ireland by providing consumers  with an incentive to use debit cards 
instead of withdrawing cash from ATMs.  
 
2. General observations  
2.1  One of the basic tasks of the European System of Central Banks (ESCB)  under the fourth indent of 
Article 127(2) of the Treaty on the Functioning of the European Union (TFEU)  is to promote the 
smooth operation of payment system s. The ECB also has a special responsibility for cash, as it  has 
the exclusive right to authorise the issue of euro banknotes within the Union in accordance with 
Article 128 TFEU and Article 16 of the Statute on the European System of Central Banks and the 
European Central Bank . Within its sphere of competence, the ECB monitors and continuously 
seeks to pr omote the safety, resilience and efficiency of these means of payment . The ECB is 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consult ation of the European Central Bank by national 
authorities regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42) . 
ECB -PUBLIC  
2 neutral with regard to the se different means of payment , meaning that  it does not favour one 
instrument over another.  As a result , the ECB favours a carefully considered and balanced 
approach to national measures taken in this area.  
2.2 The ECB understands  the objective of encouraging the greater use of electronic methods of 
payment in Ireland.  This should not , however , lead to legislation making the  use of  euro banknotes  
more expensive than electronic methods  of payment, thus putting legal tender at a disadvantage.   
2.3  The ECB would point out that since the stamp duty charge is a form of taxation on the withdrawal 
of cash from ATMs , it could affect the legal tender status of euro banknotes. Moreover, 
notwithstanding the public reason for the stamp duty charge and  the low level of charges imposed 
by the draft law , the ECB is concerned that this may set a precedent for the possible future taxation 
on the channels to access eur o banknotes . 
2.4 While welcoming the removal of the stamp duty charge on cash, debit and combined cards, t he 
ECB notes that the proposed stamp duty on ATM withdrawals c ould make the use of euro 
banknotes more expensive than  electronic payments , and would t herefore recommend that the 
measure be reconsidered.  
 
This opinion will be published on the ECB’s website.  
 
 Done at Frankfurt am Main,  10 December 2015.  
 
[signed]  
 The President of the ECB  
Mario DRAGHI