Despite the increase, the share of tax to economic output in Cyprus was the seventh lowest in the EU together with that of Malta last year, right behind Spain’s 34.1% and ahead of Slovakia’s 32.4%, Eurostat said in a statement on its website. The EU average was 40 % and that in the euro area was 41.3%.

France topped the list last year with 47.6% followed by Denmark with 47.3% and Belgium with 46.8%, Eurostat said. The lowest ratio of tax to gross domestic product (GDP) was that of Ireland with 23.8% followed by Romania and Bulgaria with 26% and 29% respectively.

Taxes on production and imports accounted last year in Cyprus 15.4% of economic output which included value added tax revenue with 9.2%, Eurostat said. Revenue from taxes on income was 9.7% of the economy, broken down to 2.9% on taxes on individuals or household income and 5.8% on profits of corporations, including taxes on holding gains. The share of net social contributions was 8.5%.

The ratio of revenue from corporate taxation of Cyprus, which often faces criticism over its comparably low corporate tax rate of 12.5%, was the second-highest in the EU, right behind Malta’s 6.5%, Eurostat said.

In the EU, the share of taxes on production and imports was on average 13.6% last year compared to 13.2% in the euro area, Eurostat said.

Taxes on income and wealth were 13% of the EU’s GDP and 12.6% of that of the euro area. Lastly, taxes on individual or household income was 9.3% and 9.2% of the EU’s and the euro area’s economy respectively while revenue from taxes on company income was in both cases 2.6%.

Source: Cyprus Mail