ECONOMY FINANCE&BANKING

Eurostat: Ireland, Romania- lowest tax share in GDP in EU

The share of taxes in the Gross Domestic Product (GDP), namely the sum of taxes and social contributions as percentage out of the GDP, stood at 40 pct in the European Union (EU) in 2015, among member states the lowest share being recorded in Ireland (24.4 pct) and Romania (28 pct) according to data published on Friday by the European statistics office (Eurostat).

At the opposite end, there are France and Denmark, where the share of taxes in the GDP was of 47.9 pct, and 47.6pct respectively .

In 2015, as compared to 2014, the share of taxes in GDP at EU level has remained unchanged at 40 pct, while in Romania it has slightly increased (from 27 pct to 28 pct). In most member states, the share of taxes in GDP has risen, the highest growths being recorded in Lithuania (from 27.9 pct in 2014 to 29.4pct in 2015) and Estonia (from 32.8pct to 34.1pct). In contrast, decreases were recorded in eight member states, especially in Ireland (from 29.9 pct in 2014 to 24.4 pct in 2015) and Denmark (from 50.3 pct to 47.6 pct).

Eurostat data further show that in 2015, taxes for production and imports have represented the greatest share of revenue taxes in UE, accounting for 13.6 pct of GDP, closely followed by net social contributions of 13.2 pct and income and health taxes of 13.0 pct. The order is similar to that in Romania, where production and imports taxes represented the largest share in tax revenues, accounting for 13.4 pct of GDP, followed by net social contributions of 8.1 pct and income and wealth taxes of 6.6 pct.

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