EU Member States’ tax revenues fell by 3.9% in nominal terms in 2020 for the first time since the 2009 financial crisis, according to the Annual Report on Taxation 2022 published by the European Commission on Tuesday 28 June. On the other hand, public expenditure jumped from 46.5% in 2019 to 53% in 2020 due to emergency measures taken to deal with the Covid-19 pandemic.
This report shows that the pandemic and Russia’s invasion of Ukraine are testing both the resilience of national economies and their capacity to respond. Some immediate measures to address the current crisis, including a temporary reduction in energy taxation and income support for the poorest or hardest hit households, have already been implemented.
The Annual Report on Taxation 2022 is accompanied by a report on the most striking trends in taxation in the Member States in recent years. In particular, it reveals that labour taxes were more resilient than other tax bases in 2020, a situation that has changed the EU’s tax structure.
Read the Annual Report on Taxation 2022: https://aeur.eu/f/2cx
Read the report on taxation trends in the EU: https://aeur.eu/f/2cy (Original version in French by Anne Damiani)