THE OECD compilation of annual revenue statistics reveals that the
majority of OECD governments have stabilised their tax to GDP ratio with the
average marginally moving from 33.8% in 2009 to 33.9% in 2010. However, that's
still down from 34.6% in 2008 and well below the most recent high point of 2007
when tax to GDP ratios averaged 35.2%.
The data collected also show that
in a period when all levels of government have seen pressure on expenditure and
revenues, the average tax ratio for state, regional and local governments has
remained steady since 2007 while that for central government has
declined.
Key highlights of the Compilation are:
+
Compared with 2007 pre-crisis tax to GDP ratios, the ratio in 2010 was still
down more than 3 percentage points in six countries. In Spain it declined from
37.2% to 31.7% and in Iceland from 40.6 to 36.3%. Chile, Israel, New Zealand and
the United States showed declines of 3-4 percentage points over the same
period.
+ Historically, tax-to-GDP ratios rose during the 1990s and the
highest ratio on record was 35.3%, in 2000. They fell back slightly between 2001
and 2004, but then rose again between 2005 and 2007 before falling back
following the crisis.
+
Denmark has the highest tax-to-GDP ratio among OECD countries (48.2% in 2010),
followed by Sweden (45.8%).
+ Mexico (18.7% in 2010) and Chile (20.9%)
have the lowest tax-to-GDP ratios among OECD countries. The United States has
the third lowest ratio in the OECD region at 24.8% with Korea at 25.1% and
Turkey at 26.0%.
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