articles | 09 October 2014

Direct tax revenue dips in first eight months of 2014

Direct tax revenue in the first eight months of the year fell 2% to €1.17 billion compared to the same period in 2013, the tax department said recently.

Income tax collected from public sector employees and private sector employees fell 18% to €82.5 million and 6% to €189.3 million in January to August this year respectively compared to a year ago.

Income tax from self-employed fell 14% to €19.1 million, while corporate tax revenue fell marginally to €416.5 million.

The drop in revenue was exacerbated by an annual 5% drop in revenue from special contribution to defence fund to €313.5 in January to August, the statement said. The defence levy is imposed on income from interest, rent, dividends and corporate profit.

A 53% increase in revenue from capital gains tax and an annual 33% increase in revenue from property tax, which rose to €22.4 million and €14.3 million respectively were able to partly compensate the overall declining trend in revenue, the tax department said.

Revenue from the special contribution of the public and private sector rose in the first eight months of 2014 by 59% to €28.7 million compared to a year ago, while further €32.4 million was collected in the form of a cut in the public service employees’ pay, which was 44% more than in the respective period last year, according to the tax department. Revenue from penalties rose 53% to €26.1 million.

Source: Cyprus Mail

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