Cyprus tax revenue declines 15%

Total tax revenue collected by the Inland Revenue Department during the first ten months of 2009 fell by 15% to EUR 1.45 bln from EUR 1.72 bln a year ago in the same period for a EUR 261.71 mln deterioration, mainly as a result of a 79% plunge in tax from capital gains imposed on property transactions.
The IRD reported that capital gains tax in the Jan-Oct 2009 period fell by a whopping 79% to EUR 59.9 mln from EUR 278.86 mln a year ago as the number of property transactions fell sharply and in some areas came to a standstill.
This is in line with other statistics released by the government, showing that during the first ten months of the year, property sale contracts announced by the Land Registry Departments fell by 49.1%.
On the other hand, income tax from employees increased by 12.4% to EUR 399.6 mln, whilst income tax from corporation tax fell 9% to EUR 556.4 mln. Revenue from the 10% defence tax imposed on bank deposits fell marginally by 2% to EUR 306.1 mln as total deposits placed with the banks also fell during the period.