Cyprus Mail 30 October 2019 - article by Jonathan Shkurko
The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of Gross Domestic Product (GDP), stood at 33.8 per cent in Cyprus in 2018, according to a study published by Eurostat.
The European Union average tax-to-GDP ratio was calculated at 40.3 per cent, registering a slight increase compared with 2017, when it stood at 40.2 per cent.
Cyprus also registered a slight increase from 2017, when the tax-to-GDP ratio stood at 33.3 per cent.
In the euro area, tax revenue accounted for 41.7 per cent of GDP in 2018, up from 41.5 per cent in 2017.
Tax indicators are compiled in a harmonised framework based on the European System of Accounts (ESA 2010), enabling an accurate comparison of the tax systems and tax policies between EU Member States.
The highest tax-to-GDP ratios were registered in France, with 48.4 per cent, Belgium, with 47.2 per cent and Denmark, with 45.9 per cent.
At the opposite end of the scale, Ireland, with 23 per cent, Romania, with 27.1 per cent and Bulgaria, with 29.9 per cent, registered the lowest ratios.
In 2018, taxes on production and imports made up the largest part of tax revenue in the EU, accounting for 13.6 per cent of the GDP, closely followed by net social contributions (13.3 per cent) and taxes on income and wealth (13.2 per cent).
For taxes related to income and wealth, Cyprus stood at 9.1 per cent in 2018, with the highest share registered by Denmark with a staggering 28.9 per cent of their GDP.
