Cyprus had the largest increase among EU member states in its tax-to-GDP ratio in 2022 compared to 2021, according to data published by Eurostat, the statistical service of the European Union. The tax-to-GDP ratio is defined as the sum of taxes and net social contributions as a percentage of gross domestic product. The tax-to-GDP ratio increased in twelve EU countries, with the largest increases being observed in Cyprus (from 34.8% in 2021 to 36.5% in 2022) and Hungary (33.9% in 2021 and 35.1% in 2022). In contrast, decreases were recorded in fifteen EU countries, with the largest recorded in Denmark (from 48.3% in 2021 to 42.5% in 2022) and Poland (from 37.6% to 35.3%). The overall tax-to-GDP ratio in the EU in 2022 stood at 41.2%, a decrease compared with 2021 (41.5%). In the euro area, tax revenue increased in line with nominal GDP, meaning that the tax-to-GDP ratio in 2022 remained stable at 41.9%. In absolute terms, in 2022, revenue from taxes and social contributions increased by 480 billion euro in the EU compared with 2021, to stand at 6,549 billion euro. The tax-to-GDP ratio varied significantly between EU countries in 2022, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (48.0%), Belgium (45.6%) and Austria (43.6%). Ireland (21.7%), Romania (27.5%) and Malta (29.6%) registered the lowest ratios.
Source: Cyprus News Agency