In 2005, tax revenue1 (i.e. the total amount of taxes and social contributions) in the EU272 stood at 40.8% of GDP, compared with 40.4% in 2004. In the Eurozone2 (EA13) tax revenue was 41.2% of GDP in 2005, compared to 40.9% in 2004.
Over a longer period, tax revenue as a percentage of GDP in both the EU252 and the Eurozone were in 2005 slightly below the levels recorded in 1995.
These figures come from a publication3 issued by Eurostat, the Statistical Office of the European Union.
This report gives additional information on the evolution of tax
revenue in the EU and the Member States between 1995 and 2005, and on
the breakdown of tax revenue across Member States by main tax category.
Tax revenue ranged from 29% of GDP in Lithuania and Romania to 52% in Sweden
Among the Member States there were substantial differences in the tax-to-GDP ratio. In 2005 Sweden (52.1%) recorded the highest ratio, followed by Denmark (51.2%), Belgium (47.7%), France (45.8%), Finland (44.0%) and Austria (43.6%). The lowest ratios were observed in Romania (28.8%), Lithuania (29.2%), Slovakia (29.5%), Latvia (29.6%), Estonia (31.0%) and Ireland (32.2%).
In 2005, as compared with 2004, tax
revenue as a proportion of GDP rose in nineteen Member States, fell in
six and remained stable in Germany and Greece. The highest increases in the tax-to-GDP ratio were recorded in Cyprus (from 34.1% in 2004 to 36.2% in 2005), Malta (from 36.2% to 37.7%), Poland (from 32.7% to 34.2%) and Denmark (from 49.9% to 51.2%). The largest reductions were observed in Austria (from 44.4% to 43.6%), the Czech Republic (from 36.8% to 36.3%), Estonia (from 31.5% to 31.0%) and Slovakia (from 30.0% to 29.5%).
Variation in structure of taxation between Member States
At EU27 level, the three main categories of taxes4
contribute roughly equally to total tax revenue: in 2005 taxes on
production and imports, such as VAT, import and excise duties,
accounted for 34% of the total tax revenue, taxes on income and wealth
for 31% and actual social contributions for 32%.
However, the structure of taxation varies considerably between Member States. In 2005, Bulgaria (19.0%), Denmark (17.9%) and Cyprus (17.4%) had the highest ratios of taxes on production and imports to GDP, compared to an EU27 average of 13.8%. On the other hand, Lithuania (11.5%), the Czech Republic (11.9%) and Germany (12.1%) recorded the lowest ratios.
With regard to taxes on income and wealth, Denmark (31.2%), Sweden (20.1%) and Finland (17.5%) recorded the highest ratios to GDP, compared to an EU27 average of 12.8%, while Romania (5.3%), Bulgaria and Slovakia (both 6.1%) registered the lowest ratios.
For actual social contributions, the highest ratios to GDP were observed in Germany (16.7%), France (16.4%) and the Czech Republic (15.1%), compared to an EU27 average of 13.0%, whereas Denmark (1.1%), Ireland (4.8%) and Malta (7.2%) recorded the lowest ratios. Denmark's social security system is, in fact, almost exclusively financed by general taxation.
Ireland
Irish taxes as a percentage of GDP was 32.2% compared
with 34.9% in 1995. However, because GDP includes the output of the
multinational sector, which is very significant in Ireland (Foreign-owned
firms were responsible for 0.2% of Irish exports in 2006), it is more useful to use
Gross National Product - the total value of final goods and services
produced in a country plus income from Irish capital held abroad
set-off against transfers of net earnings of multinationals - in
effect net income outflows from Ireland . In other European countries,
there is only a marginal difference between GDP and GNP.
| |
1995 |
2005 |
| GDP |
€53,147m |
€161,163m |
| GNP |
€46,994m |
€135,914m |
| Tax as % of GNP |
36.7% |
36.2% |
We can see from the table above that the Irish tax burden has changed little since 1995.
While personal taxes have fallen, indirect or stealth taxes have risen.
In addition, as many Irish taxpayers see a necessity
to pay private health insurance because of the perceived poor quality
of the public health service, the cost is equivalent to a tax but is
not included in the taxation figures.
Family health insurance premiums of say €2,000 net of the tax credit for a family earning €60,000 gross, costs 3.3% of income.
Total taxes, % of GDP
|
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
|
EU27 |
: |
: |
: |
: |
: |
: |
41.2 |
40.6 |
40.5 |
40.4 |
40.8 |
|
EA13 |
41.4 |
42.2 |
42.6 |
42.4 |
42.9 |
42.6 |
41.7 |
41.2 |
41.2 |
40.9 |
41.2 |
|
EU25 |
41.1 |
41.7 |
41.9 |
41.9 |
42.3 |
42.1 |
41.2 |
40.6 |
40.6 |
40.5 |
40.9 |
|
EA12 |
41.4 |
42.2 |
42.6 |
42.4 |
42.9 |
42.6 |
41.7 |
41.2 |
41.2 |
40.9 |
41.2 |
|
BE |
45.9 |
46.5 |
47.0 |
47.6 |
47.6 |
47.3 |
47.4 |
47.5 |
47.1 |
47.4 |
47.7 |
|
BG |
: |
: |
: |
: |
: |
32.6 |
31.4 |
30.2 |
32.9 |
34.6 |
34.8 |
|
CZ |
36.2 |
34.7 |
35.0 |
33.4 |
34.1 |
33.9 |
34.0 |
34.8 |
35.8 |
36.8 |
36.3 |
|
DK |
49.8 |
50.1 |
49.9 |
50.3 |
50.9 |
50.2 |
49.3 |
48.7 |
48.7 |
49.9 |
51.2 |
|
DE |
41.3 |
42.3 |
42.2 |
42.4 |
43.2 |
43.3 |
41.4 |
41.0 |
41.1 |
40.2 |
40.2 |
|
EE |
37.9 |
35.6 |
35.9 |
34.9 |
34.6 |
31.3 |
30.2 |
31.2 |
31.6 |
31.5 |
31.0 |
|
IE |
34.9 |
35.1 |
34.3 |
33.4 |
33.4 |
32.9 |
31.1 |
29.8 |
30.5 |
31.9 |
32.2 |
|
EL |
34.7 |
35.1 |
36.4 |
38.4 |
39.6 |
40.0 |
38.7 |
38.9 |
37.8 |
36.7 |
36.7 |
|
ES |
33.6 |
34.0 |
34.1 |
33.9 |
34.4 |
34.8 |
34.3 |
34.7 |
34.7 |
35.4 |
36.4 |
|
FR |
44.5 |
45.7 |
45.9 |
45.8 |
46.8 |
45.9 |
45.6 |
44.9 |
44.7 |
45.0 |
45.8 |
|
IT |
41.8 |
42.3 |
44.2 |
42.9 |
42.9 |
42.1 |
41.8 |
41.2 |
41.7 |
41.0 |
40.8 |
|
CY |
26.9 |
26.8 |
26.0 |
28.2 |
28.5 |
30.5 |
31.5 |
31.5 |
33.3 |
34.1 |
36.2 |
|
LV |
33.2 |
30.8 |
32.1 |
33.8 |
32.4 |
29.7 |
28.7 |
28.4 |
28.7 |
28.7 |
29.6 |
|
LT |
28.6 |
27.9 |
31.0 |
32.0 |
31.9 |
30.2 |
28.7 |
28.4 |
28.2 |
28.6 |
29.2 |
|
LU |
38.2 |
38.6 |
40.4 |
40.4 |
39.2 |
40.0 |
40.6 |
40.0 |
39.4 |
38.8 |
39.1 |
|
HU |
41.7 |
40.6 |
39.0 |
39.1 |
39.2 |
38.6 |
39.0 |
38.6 |
38.5 |
38.7 |
38.6 |
|
MT |
31.0 |
26.0 |
28.3 |
26.4 |
28.1 |
29.2 |
31.5 |
33.1 |
33.2 |
36.2 |
37.7 |
|
NL |
41.4 |
41.4 |
40.8 |
40.6 |
41.5 |
40.9 |
39.4 |
38.7 |
38.4 |
38.7 |
39.2 |
|
AT |
43.6 |
44.8 |
46.2 |
46.2 |
45.8 |
44.8 |
46.5 |
45.5 |
44.8 |
44.4 |
43.6 |
|
PL |
32.4 |
37.2 |
36.5 |
35.4 |
35.3 |
34.0 |
33.6 |
34.3 |
33.4 |
32.7 |
34.2 |
|
PT |
32.7 |
33.5 |
33.6 |
33.9 |
34.8 |
35.2 |
34.8 |
35.6 |
36.3 |
35.4 |
36.3 |
|
RO |
: |
: |
: |
: |
: |
: |
27.8 |
28.6 |
28.1 |
27.8 |
28.8 |
|
SI |
40.5 |
39.4 |
38.3 |
39.1 |
39.5 |
38.9 |
39.2 |
39.6 |
39.8 |
39.9 |
40.7 |
|
SK |
39.7 |
38.1 |
35.1 |
35.7 |
34.3 |
33.0 |
31.6 |
32.0 |
31.1 |
30.0 |
29.5 |
|
FI |
46.3 |
47.6 |
46.8 |
46.5 |
46.1 |
47.4 |
44.7 |
44.7 |
44.1 |
43.7 |
44.0 |
|
SE |
49.7 |
52.1 |
52.6 |
53.4 |
54.0 |
54.1 |
52.1 |
50.5 |
51.0 |
51.3 |
52.1 |
|
UK |
36.9 |
36.5 |
37.1 |
38.0 |
38.4 |
38.9 |
38.7 |
37.3 |
37.1 |
37.4 |
38.6 |
|
NO |
42.3 |
42.8 |
42.5 |
42.5 |
42.8 |
43.0 |
43.2 |
43.6 |
42.9 |
44.0 |
45.0 |
Tax revenue by main tax categories, % of GDP
|
Production and imports |
Income and wealth |
Actual social contributions |
|
1995 |
2000 |
2005 |
1995 |
2000 |
2005 |
1995 |
2000 |
2005 |
|
EU27 |
: |
: |
13.8 |
: |
: |
12.8 |
: |
: |
13.0 |
|
EA13 |
13.1 |
13.9 |
13.8 |
11.1 |
12.7 |
11.7 |
15.7 |
14.7 |
14.4 |
|
EU25 |
13.4 |
14.1 |
13.8 |
12.2 |
13.8 |
12.9 |
14.1 |
13.1 |
13.0 |
|
EA12 |
13.1 |
13.9 |
13.7 |
11.1 |
12.7 |
11.7 |
15.7 |
14.7 |
14.4 |
|
BE |
12.9 |
13.8 |
13.9 |
16.3 |
17.1 |
17.1 |
14.4 |
13.9 |
13.9 |
|
BG |
: |
15.1 |
19.0 |
: |
7.0 |
6.1 |
: |
11.0 |
10.5 |
|
CZ |
12.3 |
11.3 |
11.9 |
9.6 |
8.3 |
9.3 |
14.4 |
14.2 |
15.1 |
|
DK |
17.0 |
17.2 |
17.9 |
30.7 |
30.3 |
31.2 |
1.1 |
1.8 |
1.1 |
|
DE |
12.0 |
12.5 |
12.1 |
10.8 |
12.3 |
10.2 |
17.3 |
17.3 |
16.7 |
|
EE |
13.9 |
12.4 |
13.5 |
10.9 |
7.8 |
7.1 |
13.1 |
11.0 |
10.4 |
|
IE |
14.5 |
13.7 |
13.6 |
13.5 |
13.3 |
12.3 |
5.0 |
4.4 |
4.8 |
|
EL |
14.4 |
15.5 |
12.9 |
7.4 |
10.6 |
9.3 |
10.5 |
11.5 |
12.1 |
|
ES |
10.7 |
11.9 |
12.5 |
9.9 |
10.2 |
10.9 |
11.8 |
12.0 |
12.2 |
|
FR |
16.1 |
15.8 |
15.8 |
8.1 |
12.0 |
11.4 |
18.6 |
16.1 |
16.4 |
|
IT |
12.4 |
15.2 |
14.5 |
14.5 |
14.4 |
13.3 |
12.7 |
12.1 |
12.6 |
|
CY |
11.4 |
12.4 |
17.4 |
8.7 |
10.9 |
9.4 |
6.5 |
6.5 |
8.4 |
|
LV |
14.1 |
12.3 |
12.9 |
7.1 |
7.3 |
8.0 |
12.0 |
9.9 |
8.5 |
|
LT |
12.4 |
12.6 |
11.5 |
8.7 |
8.5 |
9.1 |
7.4 |
9.4 |
8.3 |
|
LU |
11.8 |
14.0 |
13.4 |
15.3 |
14.9 |
14.0 |
9.9 |
10.1 |
10.8 |
|
HU |
17.8 |
16.1 |
15.8 |
8.8 |
9.5 |
9.0 |
14.9 |
12.9 |
13.6 |
|
MT |
12.2 |
12.6 |
16.7 |
8.0 |
9.1 |
11.8 |
6.0 |
6.4 |
7.2 |
|
NL |
11.8 |
12.5 |
13.1 |
12.3 |
11.6 |
11.6 |
15.9 |
15.4 |
13.1 |
|
AT |
14.8 |
15.1 |
14.7 |
11.6 |
13.1 |
12.9 |
14.9 |
14.7 |
14.6 |
|
PL |
14.2 |
12.6 |
13.9 |
11.7 |
7.2 |
7.0 |
11.3 |
14.4 |
13.7 |
|
PT |
13.9 |
14.1 |
15.1 |
8.4 |
9.8 |
8.7 |
9.6 |
10.3 |
11.3 |
|
RO |
: |
: |
13.0 |
: |
: |
5.3 |
: |
: |
9.7 |
|
SI |
15.9 |
16.3 |
16.4 |
7.1 |
7.5 |
9.3 |
17.3 |
14.7 |
14.8 |
|
SK |
15.1 |
12.8 |
13.0 |
11.5 |
7.6 |
6.1 |
14.1 |
13.6 |
10.9 |
|
FI |
14.2 |
13.9 |
14.1 |
17.3 |
21.1 |
17.5 |
14.5 |
12.1 |
12.1 |
|
SE |
16.1 |
16.8 |
17.3 |
19.9 |
22.2 |
20.1 |
13.0 |
14.4 |
13.9 |
|
UK |
14.1 |
14.2 |
13.3 |
15.1 |
16.8 |
16.5 |
6.8 |
6.9 |
8.0 |
|
NO |
16.1 |
13.7 |
12.9 |
16.2 |
20.2 |
23.1 |
9.9 |
9.0 |
9.1 |
- Tax revenue of general government is
defined as taxes on production and imports, current taxes on income and
wealth, capital taxes and compulsory and voluntary actual social
contributions and imputed social contributions, The definition differs
slightly from the one used in the publication “Structures of the
taxation systems in the EU” (see News Release 65/2006, 17 May 2006).
The latter excludes the voluntary and imputed social contributions and
the difference between the two measures amounts to around one percent
of GDP.
- Up to 31 December 2006 the
European Union (EU25) included: Belgium (BE), the Czech Republic (CZ),
Denmark (DK), Germany (DE), Estonia (EE), Greece (EL), Spain (ES),
France (FR), Ireland (IE), Italy (IT), Cyprus (CY), Latvia (LV),
Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), the
Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Slovenia
(SI), Slovakia (SK), Finland (FI), Sweden (SE) and the United Kingdom
(UK). From 1 January 2007 the European Union (EU27) also includes
Bulgaria (BG) and Romania (RO).
The Eurozone (EA12) consisted of 12
Member States up to 31 December 2006: Belgium, Germany, Greece, Spain,
France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal
and Finland. From 1 January 2007 the Eurozone (EA13) also includes
Slovenia.
- Eurostat, Statistics in Focus, Economy and Finance, 31/2007, "Tax revenue in the EU: Increases for the first time since 1999, to 40.9% of GDP". The publication is available free of charge in PDF format on the Eurostat website.
- The three main categories of taxescomprise:
Taxes on production and imports including value added tax (VAT), import duties, excise and other specific taxes on products and other taxes on production;
Taxeson income and wealth including personal and corporate income taxes; and
Actual social contributions comprising employers’, employees’, self-employed and non-employed actual social contributions.
Capital taxes and imputed social contributions are not included in these main categories.
