Cyprus income tax receipts drop 6.7% in Q2 2015

Income tax revenues dropped year on year by 6.7% in the second quarter, pointing to a still weak employment market.

According to preliminary data on the general government accounts revenue from taxes on (personal and corporate) income and wealth reached €274.6 million.

On the other hand, revenue from production and imports, the biggest category, rose by 2.8% to €615.8 million, suggesting a general pick-up in economic activity. Within this category, revenue from value-added tax (VAT) increased by 3.3% to €354.1 million.

Revenue from sales of government goods and services (which have been rising in price) leapt by 27.9% to €129.8 million.

Total government revenue in the second quarter rose by 1.4% to €1.63 billion.

On the expenditure side, total spending rose by 3.3% to €1.64 billion, yielding a small budget deficit of €12.2 million in the second quarter, compared with a €16.8 million surplus in the same period of 2014.

Source: InCyprus