In a report published on Thursday, 11 September, the OECD emphasised that high levels of debt, significant spending needs related to climate change, population ageing, and, at times, increased defence spending led jurisdictions of all income levels to adopt strategies that aim to mobilise more revenue.
Certain jurisdictions chose to increase the standard value-added tax (VAT), corporate income tax, or personal income tax rates as well as health- and environment-related taxes. Others adopted more targeted approaches to increase tax revenue, notably by introducing temporary or permanent taxes or surtaxes on excess profits. These measures vary in terms of their scope: some countries applying them to specific sectors, to highly profitable companies, or directly to the excess profits themselves.
A larger number of jurisdictions raised the maximum personal income tax and capital income tax rates compared to previous years – often with the aim of generating revenue or making the tax more progressive. While measures to reduce the tax base continue to be used to alleviate pressure on the cost of living, the support measures implemented in 2024 have become more targeted and less reliant on broad relief compared to the response during the energy price crisis.
Read the report: https://aeur.eu/f/if4 (Original version in French by Anne Damiani)