The parliament’s decision to reduce the immovable property tax rate resulted in an 8 per cent slump in domestic transactions in October, with the use of plastic money to €206.4m compared with the respective month of 2015, JCC Payment Systems Ltd said.
The October drop did little to reverse the overall upward trend towards electronic transactions, as in the first months of the year total transactions rose an annual 4 per cent to €1.9bn, JCC, a joint venture of banks operating in Cyprus, said in an emailed statement.
Cypriots also spent more using their cards for purchases and withdrawals abroad, which rose an annual 19 per cent in October and 13 per cent in January to October to €125.2m and €1.2bn respectively, JCC said.
Tourists spent €86.9m in October, a figure 19 per cent higher than the respective month a year before, and €641.4m in the first ten months of the year, 13 per cent more. Holders of Turkish cards spent for purchases in the government-controlled areas €2.4m last month and €21.5m since the beginning of the year, JCC said.
Holders of Cypriot cards spent €614,851 for purchases in the Turkish-held areas of the island and €322,993 in Turkey in October, JCC said. In January to October, the respective amounts were €6.1m and €2.6m.