The average level of tax revenues in OECD countries has remained largely unchanged in 2023, as governments seek to mitigate the effects of inflation against a backdrop of rising spending linked to climate change and ageing populations, according to the organisation’s latest report, published on Thursday 21 November.
The average tax-to-GDP ratio for OECD countries in 2023 was 33.9%, 0.1% lower than in 2021 and 2022, but higher than the pre-pandemic level of 33.4% in 2019. This ratio rose in 18 of the 36 OECD countries, fell in 17 and remained unchanged in one. The highest increase in 2023 was seen in Luxembourg.
In 2022, social security contributions accounted for the largest share of total tax revenue in the OECD area, averaging 24.8%. Personal income tax accounted for 23.6% of tax revenue, VAT for 20.8% and other consumption taxes for 10.8%. 12% of total tax revenue came from corporation tax.
Read the report: https://aeur.eu/f/egk (Original version in French by Anne Damiani)