Tax revenue up 30%

The Inland Revenue Department (IRD) reported a 30% increase in revenue to CYP 305 mln during the first half of 2006 on the back of higher receipts from PAYEE contributions, up 21% year-on-year to CYP 102.6 mln while income tax receipts from self employed increased by 28% to CYP 9.4 mln.

Revenue from Special Contribution for Defense recorded a 36% increase to CYP 77.3 mln, while revenue from corporation tax advanced by only 2% to CYP 40.1 mln. The Capital Gains Tax recorded the highest year-on-year increase of 96% reaching CYP 46.1 mln.

The increased Inland Revenue receipts recorded for the period January-June 2006 underpins the Government’s increasing efficiency in tax collection and provide positive signs in further improving the Budget deficit.