Government officials are considering proposals that would allow consumers to redirect €100 million in credit card taxes towards charitable causes.
More than 100 charities and a number of banks have expressed support for the proposal, which is being examined by officials at the Department of Finance.
Under the proposals consumers would be empowered to direct the €40 stamp duty on their credit card towards a registered charity or sports organisation.
The plan was drawn up by former financial accountant David Burke, who left his position at KPMG to head a voluntary lobbying campaign that aims to raise up to €100 million a year for charities.
A spokeswoman for the Department of Finance confirmed that the proposal was being examined in the context of the forthcoming budget. Senior Department of Finance officials examining the issue have expressed interest in the initiative but have voiced concern that tax revenue could be ringfenced, creating an unwelcome precedent.
However, in detailed research accompanying the proposal, Mr Burke says he has identified numerous areas where tax revenue is ringfenced. They include the Horse and Greyhound Racing Act, which redirects up to €200 million a year to Horse Racing Ireland and Bord na gCon.
Officials say the decision on whether to implement the proposal in the forthcoming budget rests with the Minister for Finance.
A number of senior politicians are seeking to have the proposal debated at Fianna Fáil's parliamentary party meeting and at the Oireachtas Committee on Finance.
Consumer champion Eddie Hobbs, who is helping to lead the campaign for the new proposal, said stamp duty on credit cards was uniquely disliked by banks and consumers, providing them with a common cause.
"Banks are generally in favour right now of any initiative which would help improve their public image. Research shows the majority of consumers believe charities make our communities better places to live and favour greater tax incentives for charitable donations," he said.
Among the charities that have officially supported the proposal are Barnardos. Its chief executive, Fergus Finlay, said it would have a direct impact on the lives of people who needed support.
"The cost to the Exchequer would be minimal and it would encourage financial institutions and suppliers of credit card services, many of whom already give generous support to Irish charitable efforts, to develop further and stronger partnerships, with benefits for everyone," Mr Finlay said.
Mary Davis, chief executive of Special Olympics Ireland, said €100 million could make a vast difference to many people's lives.
For further information on the campaign, contact: www.irishcharitycreditcard.com
