Gov’t tax revenues hit record peak in 2017 – OECD

Gov’t tax revenues hit record peak in 2017 – OECD

Mubasher: The Organisation for Economic Cooperation and Development (OECD) on Wednesday said that tax revenues in developed countries tapped a record top last year.

Total tax revenue on average accounted for 34.2% of gross domestic product (GDP) last year among 34 developed nations last year, the Paris-headquartered body said.

Although this came slightly above 34% in the prior year, the figure marked the highest average overall tax take since the OECD’s records began in 1965.

Tax-to-GDP levels rose in 19 out of the 34 OECD nations, while the ratio dropped in the remaining 15 countries.

Overall tax revenue is currently higher than its pre-crisis levels in 21 nations.

France surpassed Denmark as the most taxed country last year, with tax revenues rising to 46.2% of GDP. In Denmark, the ratio dropped to 46%.

France’s high tax burden triggered protests in mid-November, in anger at high fuel taxes and living costs. In response, the French government on Tuesday suspended further planned increases in fuel taxes for at least six months, in an attempt to mollify public anger.

The US saw the second largest increase in tax-to-GDP levels, rising by 1.3% to 27.1%, partially due to a one-off repatriation of tax on company’s foreign earnings, the OECD said.

Mexico posted the lowest overall tax burden at 16.2%.