Romania’s tax-to-GDP ratio lowest in the EU, says Eurostat

Newsroom 15/01/2016 | 18:15

Standing at 27.7 percent, Romania’s tax-to-GD ratio in 2014 was the lowest in the EU bloc, surpassed by Bulgaria (27.8 percent), Lithuania (28.0 percent) and Latvia (29.2 percent), show data from Eurostat, the statistical office of the European Union.

At the other end of the scale, with the highest share of taxes and social contributions in percentage of GDP, stood Denmark (50.8 percent), followed by Belgium and France (both 47.9 percent), Finland (44.0 percent), Austria (43.8 percent), Italy and Sweden (both 43.7 percent).

Compared with 2013, the tax-to-GDP ratio increased in 2014 in a majority of member states, with the largest rise being observed in Denmark (from 48.1 percent in 2013 to 50.8 percent in 2014), ahead of Cyprus (from 31.6 percent to 34.2 percent) and Malta (from 33.6 percent to 35.0 percent). In contrast, decreases were recorded in eight Member States, notably in the Czech Republic (from 34.8 percent in 2013 to 34.1 percent in 2014) and the United Kingdom (from 34.9 percent to 34.4 percent).

Romania was among the countries reporting increases, the ratio rising from the 27.4 percent registered in 2013.

In 2014, taxes on production and imports made up the largest part of tax revenue in the EU (accounting for 13.6 percent of GDP), closely followed by net social contributions (13.4 percent) and taxes on income and wealth (12.8 percent). The ordering of tax categories was slightly different in the euro area. The largest part of tax revenue came from net social contributions (15.5 percent), ahead of taxes on production and imports (13.3 percent) and taxes on income and wealth (12.5 percent).

Romania’s taxes were similar in weight to the ones in the EU, with taxes on production and imports having the largest share (12.9 percent), followed by net social contributions (8.6 percent) and taxes of income and wealth (6.2 percent).

Natalia Martian

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