Tax Revenues Rise in OECD
December 11, 2014 International Tax Cooperation
PARIS – The collection of tax revenues is rising in the countries of the OECD, but governments are still not taking enough steps to broaden their tax bases.
On December 10th the Organization for Economic Cooperation and Development issued a new report on the levels of tax revenues in the countries of the OECD, showing that in 2013 the ratio of total tax revenues collected to the level of the national GDP rose by 0.4 percent to an average level of 34.1 percent in the countries of the OECD.
The ratio of tax revenues collected to the national GDP rose in 21 of the 30 countries for which data was available, with the largest increase being seen in Portugal, Slovak Republic, Denmark, and Finland, while the largest drops were recorded in New Zealand Norway, and Chile.
Over the course of 2013, the largest tax-to-GDP ratio was seen in Denmark and France, which reached levels of 48.6 percent and 45 percent respectively, while the lowest were in Mexico and Korea, at 19.7 percent and 24.3 percent respectively.
It was also noted that the majority of the 30 countries took steps to raise the rate of consumption taxes in 2013, however, very few countries took steps to broaden their tax base, a move which could potentially allow the lowering of the rate of consumption taxes while raising tax revenues.
Photo By: Simon Cunningham