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Property boom fills state coffers

STATE revenue has shot up as a result of the property boom in the first four months of 2007, further smoothing Cyprus’ Euro aspirations. Figures released yesterday show revenue from capital gains tax has shot up to CYP 81.6m in the first four months of 2007 – a massive 206% jump (CYP 54.9m) over the […]

STATE revenue has shot up as a result of the property boom in the first four months of 2007, further smoothing Cyprus’ Euro aspirations.

Figures released yesterday show revenue from capital gains tax has shot up to CYP 81.6m in the first four months of 2007 – a massive 206% jump (CYP 54.9m) over the same period the previous year.

Capital gains tax is imposed on profits resulting from the sale of immovable property and is usually a reliable tracker of developments in the property market.

The cash boost helped push the Inland Revenue Department’s revenue to CYP 311.4m in the period January-April 2007, up CYP 104.4m or 50.4% over the same four months of 2006.

Receipts from corporate tax surged by 69% or CYP 19m to CYP 46.6m. The defence levy generated CYP 75.6m for the state coffers- 22.8% or CYP 14.1m more than the same period last year.

Salaried employees chipped in with CYP 78.8m – CYP 11m or 16.3% more than the first four months of 2006.

In contrast, the self-employed paid only CYP 5.4m in income tax over this period – 13.1% or CYP 800,000 less than the previous year.

Copyright © Cyprus Weekly 2007

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