Tax burden one of the lowest in EU in 2012
The overall tax-to-GDP ratio in the Republic was the fifth lowest in the EU with labour tax main source of revenue
The ratio of overall tax to GDP across the 28 member states of 39.4 per cent, according to figures from Eurostat, the statistical office of the European Union.
The tax burden in the Republic was the fifth lowest in the EU in 2012. The ratio of overall tax to GDP was 28.7 per cent compared to an average across the 28 member states of 39.4 per cent, according to figures from Eurostat, the statistical office of the European Union.
The sum of taxes and compulsory social contributions compared to GDP rose in the EU from 38.8 per cent in 2011 to 39.4 per cent in 2012. Within the euro zone area the tax-to-GDP ratio was 40.4 per cent.
The tax burden varies significantly between Member States, ranging in 2012 from less than 30 per cent of GDP in
to 45.0 per cent), Belgium (from 44.2 per cent to 45.4 per cent) and Luxembourg (from 38.2 per cent to 39.3 per cent), while the largest falls in the
Slovakia (from 28.6 per cent to 28.3 per cent).
The largest source of tax revenue in member states is labour taxes, representing more than half of total tax receipts in 2012 (51.0 per cent), followed by consumption taxes (28.5 per cent) and taxes on capital (20.8 per cent).
Here, labour taxes represented 42.7 per cent of tax receipts, followed by 34.8 per cent consumption taxes and 22.5 per cent taxes on capital.