The overall tax-to-GDP ratio in the EU-27 declined to 38.4 pct in 2009, from 39.3 pct in 2008, Eurostat said on Friday. In a report published here, the EU executive’s statistics agency said that this decrease was essentially due to the 4.3 pct drop in GDP from 2008 to 2009, rather than to tax cuts.
Greece recorded the third largest tax-to-GDP ratio decline in the EU, in the 2000-2009 period, with tax revenues falling from 34.6 pct in 2000 to 30.3 pct in 2009. Slovakia (34.1 pct to 28.9 pct), Sweden (51.1 pct to 46.9 pct) recorded the highest tax ratio declines, while Malta (28.2 pct to 34.2 pct) and Cyprus (30 pct to 35.1 pct) the highest tax ratio increases.
Overall tax burden fell from 40.5 pct to 38.4 pct in the EU-27, while in the Eurozone it fell from 41.1 pct to 39.1 pct in the 2000-2009 period.
Eurostat also said that in the period 2008-2011, 13 EU member-states raised their standard VAT rate and in particularly Hungary (25 pct), Romania (24 pct) and Greece (23). The lowest VAT rate was in Cyprus and Luxembourg (15 pct) and the highest in Denmark, Hungary and Sweden (25 pct).
The income tax rate was unchanged at 45 pct in Greece in the 2000-2011 period, while in the EU it fell from 44.7 pct to 37.1 pct and in the Eurozone it fell from 47.1 pct to 41.8 pct. The corporate tax rate fell from 40 pct to 23 pct in Greece and from 34.4 pct to 25.5 pct in the Eurozone.
Tax on labour fell from 34.5 pct to 29.7 pct in Greece in the 2000-2009 period and from 34.5 pct to 33.5 pct in the Eurozone. The consumption tax rate fell from 16.5 pct to 14 pct in Greece and was unchanged at 20.4 pct in the Eurozone.