Cyprus tax revenue up 49%

The Cyprus Inland Revenue Department (IRD) announced that total revenue during the period January –July 2007 increased by 48.9% YoY to CYP 591.5 mln or EUR 1 bln on the back of a booming real estate and higher corporate profits.

Income from Capital Gains Tax increased a whopping 177.6% YoY to CYP 156 mln on the back of strong activity in the property market. Similarly, revenue from Corporation Tax advanced by 45% YoY to CYP 119.5 mln as most corporations returned to bumper profits, while Stamp Duties increased by 53.1% to CYP 24.8 mln.

The bumper tax revenue report comes at an excellent time for the incumbent President Tassos Papadopoulos who is facing a challenge in the next presidential polls to be held in February 2008 since he will be able to boast about a strong economy and at the same time sends a clear message that the budgetary improvements recorded by Cyprus in the run up to euro adoption on January 1, 2008 are sustainable.