OECD suggests tax revenues 'have reached a plateau'

10 Dec 2019

In a new report, the Organisation for Economic Co-operation and Development (OECD) has suggested that tax revenues in advanced economies have 'reached a plateau'.

The OECD stated that the plateau has ended the trend of annual increases in the tax-to-GDP ratio experienced during the 2008 financial crisis. The tax-to-GDP ratio amounted to 34.3% in 2018 – almost unchanged since 2017, when a figure of 34.2% was recorded.

Decreases in tax revenues were experienced across a handful of countries, including Hungary and Israel. A further 19 OECD countries reported increased tax-to-GDP ratios in 2018, including Korea and Luxembourg.

France, Denmark, Belgium and Sweden had tax-to-GDP ratios above 43%, whilst Mexico, Chile, Ireland, the US and Turkey recorded ratios under 25%. The UK's ratio totalled 33.5%.

The report also revealed that corporate tax revenues continued to increase, rising to 9.3% of total tax revenues across the OECD. This marks the first time corporate income tax revenues have exceeded 9% of total tax revenues since 2008.

The OECD's full report can be found here.

Copyright

© 2024 Michael Letch & Partners LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
01277 655 626

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Address
Michael Letch & Partners LLP, 146 High Street, Billericay, Essex CM12 9DF

Michael Letch & Partners LLP is a limited liability partnership registered in England and Wales with registration number OC328815.

Michael Letch & Partners LLP is regulated by the Association of Chartered Certified Accountants in the United Kingdom.

Michael Letch & Partners LLP is also regulated by the Financial Conduct Authority to carry out specific activities and investment advice (registration number 112064).

The term ‘Partner’ is used to refer to a member of Michael Letch & Partners LLP. A list of members is open to inspection at our registered office at 146 High Street, Billericay, Essex, CM12 9DF.

Michael Letch & Partners LLP is registered to carry out audits in the UK by the Association of Chartered Certified Accountants.