According to the Cyprus Financial Mirror, increased revenue from Capital Gains Tax on Cyprus property sales has been instrumental in boosting the government’s revenue in the first nine months of 2007.
It went on to say that the Inland Revenue Department reported that the total revenue during the period January – September 2007 advanced by 44% year-on-year to CYP 860.4 million.
Revenue from Capital Gains Tax surged by 153.5% year-on-year to CYP 199.4 million on the back of the strong demand in the property market. Similarly, revenue from Corporation Tax increased by 34.7% year-on-year to CYP 257.1 million indicating a healthy business environment.
The increased Inland Revenue receipts recorded in the period underpins the Government’s increasing efficient tax collection mechanisms and provides positive signals to further improve the Budget deficit. According to last year’s estimates by the Ministry of Finance, Inland Revenue receipts were expected at CYP 783.3 million for the whole year, which were subsequently revised to CYP 1.1 billion.