Ireland has EU’s lowest revenues from taxes and social contributions to GDP

European union finances

European union financesIreland has lowest revenues from taxes and social contributions to gross domestic product in the European Union (EU), while Bulgaria has lowest ratio between income taxes to GDP, according to European statistical office Eurostat. In 2015, the share of tax revenues from gross domestic product (GDP) in Ireland was 24.4%, followed by Romania with 28% and Switzerland with 28.1%. Among countries with lowest revenues from taxes and social contributions from gross domestic product are also Bulgaria with 29.0%, Lithuania with 29.4% and Latvia with 29.5%. The highest share of collected taxes of GDP were recorded in Denmark, Belgium, Austria and Germany.

Eurostat noted that for the first time since 2010 the taxes/GDP ratio in the Eurozone decreased (41.5% in 2014 and 41.4% in 2015).

In 2015 the share of taxes on production and imports from GBP is highest in Sweden (22.1% ), Croatia (19.7%) and Hungary (18.9%), while they were lowest in Ireland (8.9%), Germany and Slovakia (both 11%). When charges related to income and wealth from GDP, the largest share is registered in Denmark (30.4%), Sweden (18.4%), Belgium (16.7%) and Finland (16.6%).

The lowest ratio of income taxes to GDP was recorded in Bulgaria (5.4%), Lithuania (5.5%) and Croatia (6%)

In 2015, taxes on production and imports account for the largest share of tax revenues in the EU (13.6% of GDP), followed by social contributions (13.2%) and taxes on income and capital (13%).

The situation in the Eurozone is slightly different. The largest part of the tax revenues come from social contributions (15.3%), followed by taxes on production and imports (13.3%) and levies on income and capital (12.6%).

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