Cyprus first in tax increase

Cyprus showed the largest increase in the tax-to-GDP ratio in 2023, as can be seen from data announced today by Eurostat.

According to the data, the overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), was set at 40.0% in the EU in 2023, down from 2022 (40.7%).

In the eurozone, the tax-to-GDP ratio also fell from 41.4% in 2022 to 40.6% in 2023.

In absolute terms, in 2023, revenues from taxes and social contributions increased by €308 billion in the EU compared to 2022, reaching €6,883 billion.

France has the highest tax rate

The tax-to-GDP ratio varied significantly between EU countries in 2023, with the highest rates recorded in France (45.6%), Belgium (44.8%) and Denmark (44.1%).

At the opposite end of the scale, Ireland (22.7%), Romania (27.0%) and Malta (27.1%) recorded the lowest proportions.

In 2023, compared to 2022, the tax-to-GDP ratio increased in 11 EU countries, with the largest increases observed in Cyprus (from 35.9% in 2022 to 38.8% in 2023) and Luxembourg (40 .2% in 2022 and 42.8% in 2023).

Conversely, reductions of more than 0.1 percentage points of GDP were recorded in 12 EU countries, with the largest reductions occurring in Greece (from 42.8% in 2022 to 40.7% in 2023) and France (from 47, 6% in 2022 to 45.6% in 2023).

Source: stockwatch.com.cy

Photo: stockwatch.com.cy