Opinion of the European Central Bank of 10 December 2015 relating to stamp duty on cash withdrawals from automated teller machines (CON/2015/55))
Date: 2015-12-10
Institutions: European Central Bank
Subjects: electronic banking, money, stamp duty

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/2015/55) 

Introduction and legal basis 

On 20 October 2015, the 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 (ATMs) in Ireland.  Each 

such cash  withdrawal  will  be charged  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  greater  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 systems. 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  promote  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  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

 
 
 
 
 
                                                 
ECB-PUBLIC 

neutral  with  regard  to  these  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 euro banknotes. 

2.4  While  welcoming  the  removal  of  the  stamp  duty  charge  on  cash,  debit  and  combined  cards,  the 

ECB  notes  that  the  proposed  stamp  duty  on  ATM  withdrawals  could  make  the  use  of  euro 

banknotes  more  expensive  than  electronic  payments,  and  would  therefore  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 

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