The FINANCIAL — The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of GDP, stood at 40.0% in the European Union (EU) in 2015, stable compared with 2014.
In the euro area, tax revenue accounted in 2015 for 41.4% of GDP, slightly down from 41.5% in 2014. This is the first time since its low point in 2010 that the tax-to-GDP ratio in both zones did not increase.
This information comes from an article issued by Eurostat, the statistical office of the European Union. Tax indicators are compiled in a harmonised framework based on the European System of Accounts (ESA 2010), enabling an accurate comparison of the tax systems and tax policies between EU Member States.
Highest tax-to-GDP ratio in France, Denmark and Belgium
The tax-to-GDP ratio varies significantly between Member States, with the highest share of taxes and social contributions in percentage of GDP in 2015 being recorded in France (47.9%) Denmark (47.6%) as well as Belgium (47.5%), followed by Austria (44.4%), Sweden (44.2%), Finland (44.1%) and Italy (43.5%). At the opposite end of the scale, Ireland (24.4% – see country note), Romania (28.0%), Bulgaria (29.0%), Lithuania (29.4%) and Latvia (29.5%) registered the lowest ratios.
Largest growth of tax-to-GDP ratio in Lithuania and Estonia
Compared with 2014, the tax-to-GDP ratio increased in 2015 in a majority of Member States, with the largest rises being observed in Lithuania (from 27.9% in 2014 to 29.4% in 2015) and Estonia (from 32.8% to 34.1%), ahead of Slovakia (from 31.3% to 32.4%), Hungary (from 38.3% to 39.2%) and Croatia (from 36.8% to 37.6%). In contrast, decreases were recorded in eight Member States, notably in Ireland (from 29.9% in 2014 to 24.4% in 2015 – see country note) and Denmark (from 50.3% to 47.6%).
Highest ratio of taxes on production and imports in Sweden,of taxes on income and wealth in Denmark and of net social contributions in France
Looking at the main tax categories, a clear diversity prevails across the EU Member States. In 2015, the share of taxes on production and imports was highest in Sweden (where they accounted for 22.1% of GDP), Croatia (19.7%) and Hungary (18.9%), while they were lowest in Ireland (8.9% – see country note), Germany and Slovakia (both 11.0%).
For taxes related to income and wealth, the highest share by far was registered in Denmark (30.4% of GDP), ahead of Sweden (18.4%), Belgium (16.7%) and Finland (16.6%). In contrast, Bulgaria (5.4%), Lithuania (5.5%) and Croatia (6.0%) recorded the lowest taxes on income and wealth as a percentage of GDP. Net social contributions accounted for a significant proportion of GDP in France (18.9%), Belgium (16.7%) and Germany (16.5%), while the lowest shares were observed in Denmark (1.0% of GDP) and Sweden (3.7%).
In 2015, taxes on production and imports made up the largest part of tax revenue in the EU (accounting for 13.6% of GDP), closely followed by net social contributions (13.2%) and taxes on income and wealth (13.0%). The ordering of tax categories was slightly different in the euro area. The largest part of tax revenue came from net social contributions (15.3%), ahead of taxes on production and imports (13.3%) and taxes on income and wealth (12.6%).
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