Filenews 11 March 2024
Expensive retail trade and services, combined with the maintenance of satisfactory growth rates in the economy, allow the state to increase its tax revenues and surpluses.
At the same time, pressure is increasing from parties and social actors to extend support measures for citizens or to avoid new taxes, such as the green tax on fuel, water and overnight stays in accommodation.
According to data released on Friday by the Statistical Service of Cyprus, the General Government surplus for January 2024 increased to €455.9 million or 1.4% of GDP, due to a significant increase of 13.25 million in revenues, compared to a surplus of €368.6 million. (1.2% of GDP) for January 2023.
More specifically, according to the Statistical Service and CNA, total revenues, during January 2024, increased by €153.0 million. (+13.2%) and amounted to €1.316.0 million, compared to €1.163.0 million. in the corresponding month of 2023.
Income and wealth tax revenues increased by €99.0m. (+22.4%) and amounted to €540.5m. compared to €441,5 mil. in 2023.
Social contributions increased by €42.3m. (+14.1%) and amounted to €343.1m. compared to €300,8 mil. in 2023. Current transfers increased by €2.9m. (+25.5%) and amounted to €14.1m. compared to €11,2 mil. in 2023.
Services revenues increased by €3.6m. (+7.2%) and amounted to €53.3m. compared to €49,7 mil. in 2023.
Interest and dividends received increased by €3.5m. (+48.6%) and amounted to €10.6m. compared to €7,1 mil. in 2023. Capital transfers increased by €2.1m. and amounted to €4.0m. compared to €1,9 mil. in 2023.
By contrast, total taxes on production and imports decreased by €0.3 million. (-0.1%) and were limited to €350.5m. compared to €350,8 mil. in 2023, of which net VAT revenue (after deduction of refunds) decreased by €22.1m. (-8.4%) and were limited to €241.3m. compared to €263,4 mil. in 2023.
Expenditure also partially increased
According to preliminary fiscal results, total expenditure increased by €65.6m in January 2024. (+8.3%) and amounted to €860.1m, compared to €794.4m. in the corresponding month of 2023.
According to the Statistical Service, social benefits increased by €38.1 million. (+11.6%) and amounted to €365.6m, compared to €327.5m. in 2023.
Staff remuneration (including imputed social contributions and pensions of civil servants) increased by €41.5m. (+16.2%) and amounted to €297.3m, compared to €255.8m. in 2023.
Intermediate consumption increased by €0.4m. (+0.5%) and amounted to €76.3m. compared to €75,9 mil. in 2023. The capital account increased by €3.1m. (+15.4%) and amounted to €23.4m. compared to €20,3 mil. in 2023, of which, fixed capital investment increased by €4.3m. (+20.0%) and amounted to €25.8m. compared to €21,5 mil. in 2023.
By contrast, subsidies decreased by €6.8m. (-61.3%) and were limited to €4.3m. compared to €11,1 mil. in 2023.
