Cyprus revenue from VAT in July increases by 1.4%

Revenue from Value Added Tax in July reached €151.4 million, marking an increase of 1.4% compared with 149.2 million in the corresponding month of 2012, VAT Service announced on Wednesday.

“Taking into consideration the economic crisis, the recession and the sizeable reduction in imports, the increase of the VAT revenue by €2.2 million can be considered as particularly important, as it contributes positively to the Ministry of Finance`s effort to achieve the fiscal targets set out,” a press release issued by the VAT service reads.

VAT receipts from companies in Cyprus increased in July by 3.9%.

Cyprus and its international lenders agreed last March on a 10 billion rescue package that included bailing in uninsured depositors in a bid to recapitalize the island`s two largest banks that suffered mammoth losses owing to the Greek sovereign debt haircut and the provisions for bad loans given to both Greece and Cyprus.

“The Service will continue working with zeal and determination intensifying efforts to collect and to shield public revenue especially during this difficult period amid an unprecedented economic crisis,” the press release notes.