/

Cyprus sees largest spike in tax-to-GDP ratio

1428 views
1 min read

Annually, the tax-to-GDP ratio increased in 12 EU countries, with the largest rise registered in Cyprus (from 34.8% in 2021 to 36.5% in 2022) and Hungary (33.9% to 35.1%).

The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 41.2% in the EU in 2022, a decrease compared with 2021 (41.5%).

In the euro area, tax revenue increased in line with nominal GDP, meaning that the tax-to-GDP ratio in 2022 remained stable at 41.9%.

In absolute terms, revenue from taxes and social contributions increased by €480 bln in the EU compared with 2021 to stand at €6,549 bln.

The tax-to-GDP ratio varied significantly between EU countries, with the highest shares of taxes and social contributions as a percentage of GDP recorded in France (48.0%), Belgium (45.6%) and Austria (43.6%).

In contrast, decreases were recorded in 15 EU countries, notably in Denmark (from 48.3% in 2021 to 42.5% in 2022) and Poland (37.6% to 35.3%).