The total revenue of the Tax Department recorded a 10% increase in the period January-October 2024 compared to the corresponding period of 2023, said Assistant Commissioner of Taxation, Ioannis Zevlaris in his address at the “SAFE VAT Forum 2024 CY”, discussing “VAT of today and tomorrow: challenges and applications in the era of the 4th industrial revolution”, on Friday morning at the European University Cyprus.
Moreover, the Minister of Finance, Makis Keravnos, in his address at the same event, noted that VAT revenue amounts to 47% of total tax revenue and noted that the digitalisation of the Tax Department, combined with the tax reform, will contribute to the already very positive results of the Cypriot economy.
The Minister said that the implementation of the new digital system Tax For All, has been a catalyst in increasing compliance, due to the digital services provided to the taxpayers. He also said that the system has also contributed to the increase in VAT revenue.
Referring to the ongoing tax reform, he said that the aim is to modernise the tax system and enhance competitiveness, in line with the EU’s digital and green agenda and the fight against tax evasion and avoidance, as well as to simplify the tax system, improve tax procedures and reduce the administrative burden for taxpayers, while maintaining transparency and tax justice.
Keravos noted that the economy’s growth rate accelerated in 2024, while the labour market saw a further decline in the unemployment rate, approaching near full employment. He also said that inflation continued its downward trend, approaching the 2% level.
In terms of public finances, Cyprus is among the best performing EU countries, the Minister highlighted. “Through good fiscal management, Cyprus has high primary surpluses and is projected to continue on the same path in the coming years, which will lead to a significant reduction in public debt as a percentage of GDP. This remarkable performance of the economy is also confirmed by the ratings and decisions of the Credit Rating Agencies, as during this administration, we have had a total of 8 upgrades from all the Credit Rating Agencies”, he noted.
On the outlook for the economy in 2025, he said it is expected to continue to show resilience, with a growth rate of 3.1%, much higher than the EU average.
In his address, the Assistant Commissioner of Taxation, Ioannis Zevlaris said that in 2022, for the first time, the Tax Department’s revenue exceeded €6 billion; in 2023 it reached €6.7 billion, while in 2024 it is expected to exceed €7 billion, noting that by October 2024 there was an increase of about 10% in revenue, compared to the same period in 2023.
Referring to the successful implementation of the “Tax for All” system, he said that since March 2023, €4.7 billion in VAT has been collected, around 150,000 refund requests have been processed and €830 million in VAT have been refunded.
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Source: CNA/MCH/AGK/2024
