- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Bad omens for Cyprus economy

MORE bad news for the Island’s Finance Ministry has come in the last week from figures published by the Customs and Inland Revenue Departments. Indirect taxes and Inland Revenue tax collections were down in January by a total of €9.9 million on January 2009; a fall of 2.6%.

State revenues from indirect taxes fell by €9 million to €145.3 million last month from €154.4 million in January 2009.

These figures are even more alarming considering that that last year’s base was very low. The Finance Ministry has based its fiscal plan on the assumption that state revenues from indirect taxes will grow by 9% in 2010.

One good piece of news was that consumer tax from tobacco rose 3.25% to €18.2 million from €17.6 million, despite a smoking ban being in operation since the start of the year.

Indirect taxes in Cyprus for January 2010

Source: StockWatch

Figures from the Inland Revenue are more encouraging; collections fell by €0.8 million to €228.5 million last month from €229.3 million in January 2009; a drop of just 0.4%.

Immovable Property Tax, Stamp Duty and Capital Gains Tax revenues all made gains, which may result from the slight improvement in the number of property sales during January and the efforts of the Interior Ministry to accelerate the issue of Title Deeds.

Cyprus Inland Revenue Tax Collections for January 2010

Source: Cyprus Inland Revenue Department