Tax burden one of the lowest in EU in 2012

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

Lithuania (27.2 per cent), Bulgaria and Latvia (both 27.9 per cent), Romania and Slovakia (both 28.3 per cent) and Ireland (28.7 per cent),

to more than 40 per cent of GDP in Denmark (48.1 per cent), Belgium (45.4 per cent), France (45.0 per cent), Sweden (44.2 per cent), Finland

(44.1 per cent), Italy (44.0 per cent) and Austria (43.1 per cent).

Hungary (from 37.3 per cent to 39.2 per cent), Italy (from 42.4 per cent to 44.0 per cent), Greece (from 32.4 per cent to 33.7 per cent), France (from 43.7 per cent

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

ratio were registered in Portugal (from 33.2 per cent to 32.4 per cent), the United Kingdom (from 35.8 per cent to 35.4 per cent) and

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.