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Property tax revenues crash

THE Cyprus Inland Revenue Department has reported a dramatic fall in property tax revenues collected during the first three months of this year.

The amount of Capital Gains Tax collected, the majority of which results from the sale of property, crashed to just €15.1 million from the €90.1 million collected during the same period last year; a drop of more than €75 million reflecting the 64.7% decline in the number of property contracts deposited at the Land Registry this year compared to last.

A survey of the Federation of Contractors’ Association also revealed that 40% of the properties built during the past year remain unsold, further indicating the rapid slowdown in the property market.

Overall, Cyprus tax revenues during the first quarter of the year fell by €45.6 million as shown in the table below.

Income Tax Revenue January to March 2009 - Inland Revenue Department
Income Tax Revenue January to March 2009 - Inland Revenue Department

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