Irish tax rise second in EU

Taxes in the Republic increased at a higher rate in 2003 than in most other EU countries, according to figures released yesterday.

Statistics from Eurostat, the EU's official number cruncher, show that in 2003, the State took €31.20 in taxes from every €100 generated in the Republic, compared to €29.80 in 2002.

The increase in the Republic's tax burden was the second highest in the 25 EU states. Only Cyprus, where the total take rose to 34.3 per cent from 32.5 per cent of gross domestic product (GDP), had a higher rate of tax increase.

The figures also show that in 2003 the governments of the 25 EU states took 41.5 per cent of the wealth generated by their citizens in taxes, compared to 41.3 per cent in 2002.

The 12 euro-zone governments took an even bigger slice, helping themselves to 42.2 per cent of their citizens' wealth.

Sweden remained the most taxed country in the union, taking 51.4 per cent of GDP in 2003, a slight increase on the 51 per cent it took the previous year.

Lithuania had the lowest tax take with its citizens paying 28.7 per cent, compared with 28.6 per cent in 2002.

The figures indicate that the Government relies heavily on indirect taxes to fill its Exchequer.

Even while the burden increased, direct taxes fell, accounting for €39.50 in every €100 in taxes taken by the State in 2003, compared to €41.10 the previous year.