1. It describes a range of other consumption taxation provisions on tobacco, alcoholic beverages and motor vehicles. [9] The most recent OECD data available for the VAT revenue ratio is from 2016. Accounting for consumption taxes reveals higher tax wedges than when just accounting for income and payroll taxes. The substantially increased importance of the value-added tax has served to counteract the diminishing share of specific consumption taxes, such as excises and custom duties. By contrast, property taxes accounted for 0.7% of total revenues in Estonia, the lowest of OECD countries and were also less than 2% in six other countries (Austria, Czech Republic, Lithuania, Mexico, Slovenia and the Slovak Republic). The exceptions were Canada and Mexico, where the share slightly declined between 1975 (1980 for Mexico due to data availability) and 2017. Approval was partially successful, following selected items could not be processed due to error, South Georgia and the South Sandwich Islands, www.gov.uk/government/statistics/corporation-tax-statistics-2019, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/833371/Aug19_Receipts_NS_Bulletin_Final.odt. After the mid-1970s, the combination of slower real income growth and higher levels of unemployment apparently limited the revenue raising capacity of governments. Tax Administration 2019 Comparative Information on OECD and other Advanced and Emerging Economies. There were no other countries with a decrease of over one percentage point. In 2018, the highest family tax wedge was in France, at 39.4 percent, while the lowest family tax wedge was in New Zealand, at 1.9 percent. By 1999, the average OECD tax-to-GDP ratio had risen to 33.8%, the highest recorded level at that time. But during and after the deep recession following the second oil shock (1980), countries in Europe saw tax levels rise further, to finance higher spending on social security and rein in budget deficits. and Israel (1.4 p.p.). Consumption taxes today on average generate 30% of the national tax take for member states of the Organisation for Economic Co-operation and Development (OECD), according to the OECD’s Consumption Tax Trends 2016. Comparing this metric across countries shows that Hungary has the lowest ratio of $1 in cost for each additional dollar raised from labor taxes. Note: These figures may differ slightly from those published on the SRB website. Note: The left-hand panel (a) refers to only those taxes which are classified as central government taxes. For 1975, please see Table 1.4 of Revenue Statistics. Elke Asen is a Policy Analyst with the Tax Foundation’s Center for Global Tax Policy, focusing on international tax issues and tax policy in Europe. The average VAT/GST¹ standard rate in the OECD was 19.3% as of 1 January 2019. In all of these countries, GDP growth was positive, although to a lesser degree than tax revenue growth. from 1965 onwards. Eight OECD countries have a federal structure. In 30 out of 36 OECD countries, total payroll taxes accounted for a larger share of the tax burden on labor than income taxes did. 829 0 obj <>/Filter/FlateDecode/ID[<1147A294F3196649A8A7BCB9DE1C770C><549E38A0250D6A47B7F11199E3BC044C>]/Index[809 50]/Info 808 0 R/Length 105/Prev 359289/Root 810 0 R/Size 859/Type/XRef/W[1 3 1]>>stream In most OECD countries, families had smaller tax burdens than single workers earning the same income, but how much less families paid varied. In contrast, in Israel the cost of raising an additional dollar in revenue from taxes on its workforce is $1.70. Note: Preliminary data for 2018 were not available for Australia and Japan. StatLink http://dx.doi.org/10.1787/888934054493. Consumption Tax Trends provides information on Value Added Tax/Goods and Services Tax (VAT/GST) and excise duty rates in OECD member countries.It also contains information about international aspects of VAT/GST developments and the efficiency of this tax. ���dca3� ����ٳl��F]�T���S��$TQ2�]�Cwҗ�z���P�PYN��%�9�?MzŸ&Z�.�(��k��x�h6+d�=�x�8$dg of GDP relative to 2017. the tax-to-GDP ratio) were virtually unchanged in 2018, with a very slight increase of just under 0.02 p.p. However, this does not mean that the average worker is not also burdened by these taxes. The share of the corporate income tax in total tax revenues varied considerably across countries from less than 5% (Estonia, Italy and Slovenia) to 21.8% (Mexico) and 21.1% (Chile) in 2017. Revenues from taxes on property decreased by 0.4 percentage points between 2016 and 2017, almost entirely due to the one-off stability contributions in Iceland in 2016. OECD iLibrary After the mid-1980s, most OECD countries substantially reduced the statutory rates of their personal and corporate income tax, but the negative revenue impact of widespread tax reforms was often offset by reducing or abolishing tax reliefs. In 2016, Iceland received revenues from one-off stability contributions from entities that previously operated as commercial or savings banks and were concluding operations. ← 6. The highest share of employer social security contribution revenues are found in Estonia, at 32.4% of total revenues. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. G���J����Q�[ ����>���7��b��q�(�0orD��&l�k�a#���{�XCB������~D��� [�D! The data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. [8] OECD Publishing, “Consumption Tax Trends 2018,” http://www.oecd.org/tax/consumption-tax-trends-19990979.htm. Denmark, which had the highest tax-to-GDP ratio of OECD countries from 2002 to 2016, had the second-highest tax-to-GDP ratio in 2018 (44.9%). The figures in this table were reported by the Central Statistics Office and are gross amounts and therefore due to adjustments will differ from the figures reported on the SRB website, which are net figures. During this period, the composition of taxes on goods and services has fundamentally changed. Some individual countries have made substantial changes to their income and payroll taxes in the last two decades. Within taxes on income and profits, the share of PIT and CIT varies: Revenues from personal income taxes are 23.9% of total taxes on average in 2017 compared with around 30% in the 1980s. 1000 Taxes on income, profits and capital gains, 1100 Taxes on income, profits and capital gains of individuals, 1200 Taxes on income, profits and capital gains of corporates. Consumption Tax Trends* - Germany VAT rate 2019 1. 1325 G St NW Help us achieve a world where the tax code doesn't stand in the way of success. ← 3. In tax policy, there is an important distinction between the “legal” and the “economic” incidence of a tax. OECD iLibrary For the countries with available data, the differences between the ratios on a net basis and on a gross basis are one percentage point or more in only France, Germany and the United Kingdom, and between half a percentage point and one percentage point in Australia, Canada, Czech Republic, Italy, New Zealand and the United States. Consumption Tax Trends provides information on Value Added Tax/Goods and Services Tax (VAT/GST) and excise duty rates in OECD member countries.It also contains information about international aspects of VAT/GST developments and the efficiency of this tax.