This text is a summary of two reports, the first one published at OECD.org and the other at ECLAC.org, the two with the same issue: Tax to GDP ratios. The first with the title:¨ Tax revenues stabilise in OECD countries in 2010.¨ Published at 29/11/2011 and the other with the title: ¨Rising tax revenues: a key to economic development in Latin America countries.¨ Published at 25/01/2012.
In those report we can see that apart from some countries in Europe, Brazil has the highest tax to GDP ratio in the world. Tax revenues can make a great difference in the development and in the well-being of citizens, when used efficiently.
The annual revenue statistics show that OECD governments have stabilised their tax to GDP ratio with average moving up slightly from 33.8% in 2009 to 33.9% in 2010. Well below the recent highest point 35.2% in 2007. In Spain it declined from 37.2% to 31.7%. In Chile, Israel and US showed declines of 3% to 4% over the same period. Denmark has the highest tax to GDP ratio among OECD countries with 48.2% and Mexico has the lowest with 18.7%.
The average tax to GDP ratio in 12 Latin American and Caribbean countries rose from 14.9% in 1990 to 19.2% in 2009. This increase reflects strong economic growth, taxation of non-renewable natural resources and better management of tax. Despite these improvements the average tax to GDP ratio in OECD countries is much higher than in L. A. and C. countries.( 33.8% compared to 19.2% respectively). Tax to GDP ratio vary from Guatemala with the lowest at 12.2% to Brazil with the highest at 32.6%.
Below, some tax to GDP ratio in some countries, from the highest to lowest. The sources are: Revenue statistics of the OECD countries 2011 edition. And Latin America economic outlook 2011.
Denmark 48.2% Brazil 32.6%
Sweden 45.8% Argentina 31.4%
Italy 43.4% Canada 31.0%
Norway 43.0% USA 24.8%
Belgium 43.0% Uruguay 22.5%
France 42.9% Costa Rica 21.0%
Netherlands 39.0% Chile 20.9%
Germany 37.4% Mexico 18.7%
UK 35% Colombia 17.4%
Estonia 34.0% Peru 16.0%
Poland 31.8% Venezuela 14.4%
Spain 31.7% Republic Dominican 13.1%
Portugal 31.3% Guatemala 12.2%
Greece 30.9%
Switzerland 29.8% Israel 31.4%
Ireland 27.8% New Zealand 31.3%
Japan 26.9%
Turkey 26.0%
Australia 26.0%
South Korea 25.1%
