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Gaping hole in government revenues

DURING the first seven months of this year, the Cyprus Government collected €902 million compared to the €1,014 million it collected during the first seven months of 2008; a fall of €112 million or 11%.

Compared to the first seven months of last year, Capital Gains Tax receipts have fallen by €183 million, Stamp Duty receipts by €17 million and Immovable Property Tax by more than €900,000.

Cyprus Inland Revenue Department collections January - July 2009
Cyprus Inland Revenue Department collections January - July 2009

The collapse of the property market has resulted in sales to non-Cypriots falling by 75% and sales to Cypriots falling by 58% this year. The Cyprus government is looking at ways to fill the gaping hole in public finances.

The ‘town planning amnesty’ proposed by Interior Minister Neoclis Sylikiotis should provide the state with between €100 million and €120 million for every 10,000 titles and transfers completed, according to the head of the Land Registry, Andreas Christodoulou.

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Capital Gains Tax

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