Tax-to-GDP ratio in 2015 continued to vary by 1 to 2 across EUStaff Writer | November 28, 2016
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.
Europe Taxation in the EU member sates
This is the first time since its low point in 2010 that the tax-to-GDP ratio in both zones did not increase, according to Eurostat.
The tax-to-GDP ratio varies significantly between member sates, 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.
Compared with 2014, the tax-to-GDP ratio increased in 2015 in a majority of member sates, 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 sates, notably in Ireland (from 29.9% in 2014 to 24.4% in 2015 – see country note) and Denmark (from 50.3% to 47.6%). ■