Tax revenues worldwide recover from recession

Dec. 29, 2013 at 6:40 PM
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PARIS, Dec. 29 (UPI) -- Tax revenue worldwide is still bouncing back from the low levels of 2008-09, the height of the recession, a non-profit group in France says.

A report by the Organization for Economic Cooperation and Development in Paris found the average tax revenue to gross domestic product ratio in OECD countries was 34.6 percent in 2012, compared with 34.1 percent in 2011 and 33.8 percent in 2010.

The ratio of tax revenues to GDP rose in 21 of the 30 countries for which 2012 data is available, and fell in nine countries. The number of countries with increasing and decreasing ratios was similar to that seen in 2011, indicating a continuing trend toward higher revenues, OECD said.

Denmark has the highest tax-to-GDP ratio among OECD countries at 48 percent in 2012, followed by Belgium and France, both at 43.5 percent.

Mexico at 19.6 percent in 2012 and Chile at 20.8 percent have the lowest tax-to-GDP ratios among OECD countries. They are followed by the United States, which has the third-lowest ratio at 24.3 percent and South Korea at 26.8 percent.

The largest tax increases in 2012 occurred in Hungary, Greece, Italy and New Zealand. The largest falls were in Israel, Portugal and Britain.

The increase in tax ratios between 2011 to 2012 is due to a combination of factors. In countries with progressive tax program, revenue rises faster than income during periods of real income growth, the report said.

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