A partial lifting of payroll deductions for state employees appears to have a positive effect on the country’s tax revenues during the January-August 2022 time period.
Total tax collections during this time period were up by €692 million compared to the same period last year, Philenews reported on Thursday.
Apparently, the increase will significantly exceed €1 billion by the end of the year, according to Ministry of Finance data.
And the increase is due to the further improvement of economic activity in the tourism sector, the transfer of revenue from 2021 to 2022 and increased income tax for civil servants.
Specifically, in the first eight months of this year the total from indirect and direct taxes amounted to €4.2 billion compared to €3.5 billion in 2021, €3.1 billion in 2020 and €3.6 billion in 2019.
In a letter sent to parliament, Finance Ministry Permanent Secretary George Panteli noted that a significant part of the increased income tax revenues in 2022 paid by public and wider public sector employees is due to the gradual withdrawal of the pay cut.