In 2021, revenue from taxes and social contributions in the EU member states increased by 520 billion EUR compared with 2020, to stand at 6 058 billion EUR and the lowest tax-to-GDP ratios were recorded in Ireland and Romania, the data published on Monday by Eurostat shows, Agerpres reports.

The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 41.7pct in the EU in 2021, an increase compared with 2020 (41.1pct).

The Eurostat data revealed that the tax-to-GDP ratio varied significantly between Member States in 2021, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in Denmark (48.8pct), France (47.0pct) and Belgium (46.0pct). At the opposite end of the scale, Ireland (21.9pct) and Romania (27.3pct) registered the lowest ratios.

Compared with 2020, the tax-to-GDP ratio increased in twenty EU Member States in 2021, with the largest rise being observed in Cyprus (from 34.0pct in 2020 to 36.0pct in 2021).

In contrast, decreases were recorded in five Member States, notably in Hungary (from 36.1pct in 2020 to 34.0pct in 2021) and Croatia (from 36.9pct to 35.8pct).

Agerpres