In 2023, the EU’s tax-to-GDP (gross domestic product) ratio fell to its lowest level since 2011, according to the European Commission in its annual report on taxation, published on Tuesday 24 June.
EU tax revenues fell from 40.2% of GDP in 2021 to 39% in 2023. Lower revenues from environmental and property taxes explain 60% of this decline. The EU has also seen high inflation, which is driving nominal GDP growth. Despite a 4.7% rise in tax revenues to €6,712 billion, the faster 6.5%...