Romania’s tax-to-GDP ratio below EU average in 2015

Romania’s collection of taxes and net social contributions amounted to 28 percent of GDP in 2015, while average rate in the European Union was of 40 percent, according to Eurostat, the statistics office of the EU.

The highest ratios of tax-to-GPD were recorded in France (47.9 percent), Denmark (47.6 percent), as well as Belgium (47.5 percent), followed by Austria (44.4 percent), Sweden (44.2 percent), Finland (44.1 percent) and Italy (43.5 percent).

The lowest rates were recorded in Ireland (24.4 percent), Romania (28 percent), Bulgaria (29 percent), Lithuania (29.4 percent) and Latvia (29.5 percent).

“Compared with 2014, the tax-to-GDP ratio increased in 2015 in a majority of member states, with the largest rises being observed in Lithuania (from 27.9 percent in 2014 to 29.4 percent in 2015) and Estonia (from 32.8 percent to 34.1 percent), ahead of Slovakia (from 31.3 percent to 32.4 percent), Hungary (from 38.3 percent to 39.2 percent) and Croatia (from 36.8 percent to 37.6 percent). In contrast, decreases were recorded in eight member states, notably in Ireland (from 29.9 percent in 2014 to 24.4 percent in 2015) and Denmark (from 50.3 percent to 47.6 percent),” according to Eurostat.

The biggest yearly increases in the collection of taxes were seen in Lithuania (from 27.9 percent to 29.4 percent) and Estonia (from 32.8 percent to 34.1 percent).

Looking at the main tax categories, a clear diversity prevails across the EU Member States. In 2015, the share of taxes on production and imports was highest in Sweden (where they accounted for 22.1 percent of GDP), Croatia (19.7 percent) and Hungary (18.9 percent), while they were lowest in Ireland (8.9% – see country note), Germany and Slovakia (both 11.0%).

For taxes related to income and wealth, the highest share by far was registered in Denmark (30.4% of GDP), ahead of Sweden (18.4 percent), Belgium (16.7 percent) and Finland (16.6 percent). In contrast, Bulgaria (5.4 percent), Lithuania (5.5 percent) and Croatia (6.0 percent) recorded the lowest taxes on income and wealth as a percentage of GDP.