Cyprus has largest rise in tax to GDP ratio from 2020 to 2021 according to Eurostat

Cyprus saw the largest rise in the EU in its tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), in 2021 compared to 2020, according to data released by Eurostat, the statistical service of the European Union.


The country’s tax-to-GDP ratio increased from 34.0% in 2020 to 36.0% in 2021.


Overall in the EU, the tax-to-GDP ratio stood at 41.7% in 2021, an increase compared with 2020 (41.1%).


This increase in revenue from taxes and social contributions in the EU corresponds to a 520 billion euro increase compared with 2020, to stand at 6058 billion euro.


Compared with 2020, the tax-to-GDP ratio increased in twenty EU member states but decreased in five, notably in Hungary (from 36.1% in 2020 to 34.0% in 2021) and Croatia (from 36.9% to 35.8%).


The highest shares of taxes and social contributions as a percentage of GDP in 2021 were recorded in Denmark (48.8%), France (47.0%) and Belgium (46.0%). At the opposite end of the scale, Ireland (21.9%) and Romania (27.3%) registered the lowest ratios.


Source: Cyprus News Agency