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Revenue Statistics

HEALTH TAXES IN OECD COUNTRIES

1965-2023

Revenue Statistics 2024

HEALTH TAXES IN OECD COUNTRIES

1965-2023

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Foreword

This annual publication provides internationally comparative data on tax levels and tax structures in member countries of the Organisation for Economic Cooperation and Development (OECD). The taxes imposed in each country are presented in a standardised framework based upon the OECD classification of taxes and its Interpretative Guide as contained in Annex A to this Report. The data for the Report has, for the most part, been provided by Delegates to Working Party No.2 (WP2) on Tax Policy Analysis and Tax Statistics of the Committee on Fiscal Affairs. The OECD acknowledges the co-operation of the International Monetary Fund, whose classification of tax revenues in the Government Finance Statistics Manual 2014 is in many respects similar to that of the OECD. The most important of the other classifications currently in use is the System of National Accounts (henceforth referred to as SNA) and the European System of Integrated Economic Accounts of EU member states (henceforth referred to as ESA), which is primarily an elaboration of the SNA, though differing from it in certain respects. Subject to a few exceptions, SNA/ESA figures can be reconciled with the figures in the present Report, since SNA criteria and definitions have been adopted unless the contrary is specifically indicated.

The material is organised in six chapters. Chapter 1 summarises tax revenue trends over the past six decades, with a focus on the ratio of tax revenues to GDP, tax structures and taxes by level of government. It also discusses the treatment of non-wastable tax credits and provides information on financing of social security-type benefits. This year’s issue also carries in Chapter 2 a special feature on “Health taxes in OECD countries”. Chapter 3 contains a set of comparative statistical tables for years 1965-2023. Chapter 4 provides country tables with tax revenue and tax-to-GDP ratios broken down by selected tax categories and by level of government for years between 1990 and 2022. Two memorandum tables show how countries finance their social benefits and report taxes and social security contributions paid by general government as a percentage of GDP. Chapter 5, only available online, provides statistical tables with a detailed breakdown of tax revenues by country between 1965 and 2022. A further two memorandum tables show how countries finance their social benefits and report taxes and social security contributions paid by general government in national currency. Chapter 6, which is also only available online, attributes tax revenues to general government by the following sub-sectors: central, state, local and social security funds. It contains tables that provide a detailed breakdown of tax revenues by country between 1975 and 2022 Because of space limitations, Chapters 4, 5 and 6 show data for selected years between 1965 and 2022; data for the years not shown are available online.

Revenue Statistics 2024 has been produced by the OECD’s Centre for Tax Policy and Administration (CTPA). The authors of this edition were Alexander Pick, Nicolás Miranda and Michael Sharratt. The special feature was written by Alexander Pick. The authors would like to thank colleagues in the OECD for their invaluable comments and practical support in finalising the publication, including Bert Brys, Stéphane Buydens, Céline Colin, Kurt Van Dender, Rebekka Hviid Kanstrup, Sabine Laudage Teles, Alexandra Le Cam, Michael Sicsic and Jingjing Xia in CTPA. Stephanie Coic in the Development Cooperation Directorate designed the cover. The authors would also like to thank WP2 delegates and their colleagues working in national administrations for their input and comments.

In Memoriam

This edition of Revenue Statistics is dedicated to the memory of Christian Valenduc, who died on 1 October 2024. Christian served as Chair of Working Party No. 2 (WP2) on Tax Policy and Statistics as well as the WP2 delegate for Belgium. Christian was an outstanding colleague who made a profound contribution to the OECD’s work on tax.

FIGURES

Figure 1.1. Trends in tax-to-GDP ratios, 1965-2023p 14

Figure 1.2. Changes in tax-to-GDP ratios, 2022-23p and 2010-23p 16

Figure 1.3. Relative changes in nominal tax revenues and nominal GDP, 2022-23p 18

Figure 1.4. Tax-to-GDP ratios in 2022 and 2023p 19

Figure 1.5. Tax structures in 2022 (as % of total tax revenue) 21

Figure 1.6. Trends in tax structures (1965-2022, as % of total tax revenue) 22

Figure 1.7. Composition of social security contributions, as % of total social security contributions, 2022 23

Figure 1.8. Share of general consumption tax revenues (left panel) and specific consumption revenues (right panel) as % of total revenues, 1975-2022 24

Figure 1.9. Composition of revenues of federal or central government (left) and sub-national government (right), 2022 28

Figure 1.10. Composition of earmarked financing for social security-type benefits, 2022 32

Figure 1.11. Tax-to-GDP ratios and earmarked social security financing (% of GDP, 2022) 33

Figure 2.1. Level and structure of health taxes in the OECD in 2022 42

Figure 2.2. OECD average revenues from the three difference categories of health taxes, 2000-2022 44

Figure 2.3. Changes in the level of revenues from the different health taxes between 2000 and 2022 by OECD country 45

Annex Figure 2.A.1. Level of health, tobacco, alcohol and SSB excise tax revenue by OECD country, 2022

Annex Figure 2.A.2. Share of health, tobacco, alcohol and SSB excise tax revenue by OECD country, 2022

TABLES

Table 1.1. Revenue Statistics: Key figures

Table 1.2. Average tax structure in OECD countries, selected years (unweighted average as % of GDP)

Table 1.3. Attribution of tax revenues to sub-sectors of general government as % of total tax revenue, federal countries

Table 1.4. Attribution of tax revenues to sub-sectors of general government as % of total tax

Table 1.5.

Table

Table 3.2.

Table

Table 3.4. Tax revenue of main headings as % of total tax revenue, 2022

Table 3.5. Tax revenue of main headings as % of

Table 3.6.

Table 3.7.

Table 3.8.

Table

Table

Table

Table

Table

Table

Table

(1000)

Table 4.5. Belgium, tax revenue and % of GDP by selected tax category

Table 4.6. Belgium, tax revenue and % of GDP by level of government and main taxes

Table 4.7. Canada, tax revenue and % of GDP by selected tax category

Table 4.8. Canada, tax revenue and % of GDP by level of government and main taxes

Table 4.9. Chile, tax revenue and % of GDP by selected tax category

Table 4.10. Chile, tax revenue and % of GDP by level of government and main taxes

Table 4.11. Colombia, tax revenue and % of GDP by selected tax category

Table 4.12. Colombia, tax revenue and % of GDP by level of government and main taxes

Table 4.13. Costa Rica, tax revenue and % of GDP by selected tax category

Table 4.14. Costa Rica, tax revenue and % of GDP by level of government and main taxes

Table 4.15. Czechia, tax revenue and % of GDP by selected tax category

Table 4.16. Czechia, tax revenue and % of GDP by level of government and main taxes

Table 4.17. Denmark, tax revenue and % of GDP by selected tax category

Table 4.18. Denmark, tax revenue and % of GDP by level of government and main taxes

Table 4.19. Estonia, tax revenue and % of GDP by selected tax category

Table 4.20. Estonia, tax revenue and % of GDP by level of government and main taxes

Table 4.21. Finland, tax revenue and % of GDP by selected tax category

Table 4.22. Finland, tax revenue and % of GDP by level of government and main taxes

Table 4.23. France, tax revenue and % of GDP by selected tax category

Table 4.24. France, tax revenue and % of GDP by level of government and main taxes

Table 4.25. Germany, tax revenue and % of GDP by selected tax category

Table 4.26. Germany, tax revenue and % of GDP by level of government and main taxes

Table 4.27. Greece, tax revenue and % of GDP by selected tax category

Table 4.28. Greece, tax revenue and % of GDP by level of government and main taxes

Table 4.29. Hungary, tax revenue and % of GDP by selected tax category

Table 4.30. Hungary, tax revenue and % of GDP by level of government and main taxes

Table 4.31. Iceland, tax revenue and % of GDP by selected tax category

Table 4.32. Iceland, tax revenue and % of GDP by level of

Table 4.33. Ireland, tax revenue and % of GDP by selected

Table 4.34. Ireland, tax revenue and % of GDP by level of

Table 4.35. Israel,

Table 4.36. Israel, tax revenue and % of

Table 4.37. Italy, tax revenue and % of GDP by selected tax category

Table 4.38. Italy, tax revenue and % of GDP by level of

Table 4.39. Japan, tax revenue and % of GDP by selected

Table 4.40. Japan, tax revenue and % of GDP by level of

Table 4.41. Korea, tax revenue and % of GDP by selected tax category

Table 4.42. Korea, tax revenue and % of

by

Table 4.43. Latvia, tax revenue and % of GDP by selected tax category

Table 4.44. Latvia, tax revenue and % of GDP by level of government and main taxes

Table 4.45. Lithuania, tax revenue and % of GDP by selected tax category

Table 4.46. Lithuania, tax revenue and % of GDP by level of government and main taxes

Table 4.47. Luxembourg, tax revenue and % of GDP by selected tax category

Table 4.48. Luxembourg, tax revenue and % of GDP by level of government and main taxes

Table 4.49. Mexico, tax revenue and % of GDP by selected tax category

Table 4.50. Mexico, tax revenue and % of GDP by level of government and main taxes

Table 4.51. Netherlands, tax revenue and % of GDP by selected tax category

Table 4.52. Netherlands, tax revenue and % of GDP by level of government and main taxes

Table 4.53. New Zealand, tax revenue and % of GDP by selected tax category

Table 4.54. New Zealand, tax revenue and % of GDP by level of government and main taxes

Table 4.55. Norway, tax revenue and % of GDP by selected tax category

Table 4.56. Norway, tax revenue and % of GDP by level of government and main taxes

Table 4.57. Poland, tax revenue and % of GDP by selected tax category

Table 4.58. Poland, tax revenue and % of GDP by level of government and main taxes

Table 4.59. Portugal, tax revenue and % of GDP by selected tax category

Table 4.60. Portugal, tax revenue and % of GDP by level of government and main taxes

Table 4.61. Slovak Republic, tax revenue and % of GDP by selected tax category

Table 4.62. Slovak Republic, tax revenue and % of GDP by level of government and main taxes

Table 4.63. Slovenia, tax revenue and % of GDP by selected tax category

Table 4.64. Slovenia, tax revenue and % of GDP by level of government and main taxes

Table 4.65. Spain, tax revenue and % of GDP by selected tax category

Table 4.66. Spain, tax revenue and % of GDP by level of government and main taxes

Table 4.67. Sweden, tax revenue and % of GDP by selected tax category

Table 4.68. Sweden, tax revenue and % of GDP by level of government and main taxes

Table 4.69. Switzerland, tax revenue and % of GDP by selected tax category

Table 4.70. Switzerland, tax revenue and % of GDP by level of government and main taxes

Table 4.71. Türkiye, tax revenue and % of GDP by selected tax category

Table 4.72. Türkiye, tax revenue and % of GDP by level of government and main taxes

Table 4.73. United Kingdom, tax revenue and % of GDP by selected tax category

Table 4.74. United Kingdom, tax revenue and % of GDP by level of government and main taxes

Table 4.75. United States, tax revenue and % of GDP by selected tax category

Table 4.76. United States, tax revenue and % of GDP by level of government and main

Table 4.77. Financing of social security benefits

Table 4.78. Social security contributions and payroll taxes paid by government, totals

Table 5.1. Australia: Details of tax revenue, 1965-2022

Table 5.2. Austria: Details of tax revenue, 1965-2022

Table 5.3. Belgium: Details of tax revenue, 1965-2022

Table 5.4. Canada: Details of tax revenue, 1965-2022

Table 5.5. Chile: Details of tax revenue, 1965-2022

Table 5.6. Colombia: Details of tax revenue, 1965-2022

Table 5.7. Costa Rica: Details of tax revenue, 1965-2022

Table 5.8. Czechia: Details of tax revenue, 1965-2022

Table 5.9. Denmark: Details of tax revenue, 1965-2022

Table 5.10. Estonia: Details of tax revenue, 1965-2022

Table 5.11. Finland: Details of tax revenue, 1965-2022

Table 5.12. France: Details of tax revenue, 1965-2022

Table 5.13. Germany: Details of tax revenue, 1965-2022

Table 5.14. Greece: Details of tax revenue, 1965-2022

Table 5.15. Hungary: Details of tax revenue, 1965-2022

Table 5.16. Iceland: Details of tax revenue, 1965-2022

Table 5.17. Ireland: Details of tax revenue, 1965-2022

Table 5.18. Israel: Details of tax revenue, 1965-2022

Table 5.19. Italy: Details of tax revenue, 1965-2022

Table 5.20. Japan: Details of tax revenue, 1965-2022

Table 5.21. Korea: Details of tax revenue, 1965-2022

Table 5.22. Latvia: Details of tax revenue, 1965-2022

Table 5.23. Lithuania: Details of tax revenue, 1965-2022

Table 5.24. Luxembourg: Details of tax revenue, 1965-2022

Table 5.25. Mexico: Details of tax revenue, 1965-2022

Table 5.26. Netherlands: Details of tax revenue, 1965-2022

Table 5.27. New Zealand: Details of tax revenue, 1965-2022

Table 5.28. Norway: Details of tax revenue, 1965-2022

Table 5.29. Poland: Details of tax revenue, 1965-2022

Table 5.30. Portugal: Details of tax revenue, 1965-2022

Table 5.31. Slovak Republic: Details of tax revenue, 1965-2022

Table 5.32. Slovenia: Details of tax revenue, 1965-2022

Table 5.33. Spain: Details of tax revenue, 1965-2022

Table 5.34. Sweden: Details of tax revenue, 1965-2022

Table 5.35. Switzerland: Details of tax revenue, 1965-2022

Table 5.36. Türkiye: Details of tax revenue, 1965-2022

Table 5.37. United Kingdom: Details of tax revenue, 1965-2022

Table 5.38. United States: Details of tax revenue, 1965-2022

Table 5.39. Financing social benefits, national currency

Table 5.40. Social security contributions and payroll taxes paid by government, national currency

Table 6.1. Australia, tax revenues by sub-sectors of government

Table 6.2. Austria, tax revenues by sub-sectors of government

Table 6.3. Belgium, tax revenues by sub-sectors of government

Table 6.4. Canada, tax revenues by sub-sectors of government

Table 6.5. Chile, tax revenues by sub-sectors of government

Table 6.6. Colombia, tax revenues by sub-sectors of government

Table 6.7. Costa Rica, tax revenues by sub-sectors of government

Table 6.8. Czechia, tax revenues by sub-sectors of government

Table 6.9. Denmark, tax revenues by sub-sectors of government

Table 6.10. Estonia, tax revenues by sub-sectors of government

Table 6.11. Finland, tax revenues by sub-sectors of government

Table 6.12. France, tax revenues by sub-sectors of government

Table 6.13. Germany, tax revenues by sub-sectors of government

Table 6.14. Greece, tax revenues by sub-sectors of government

Table 6.15. Hungary, tax revenues by sub-sectors of government

Table 6.16. Iceland, tax revenues by sub-sectors of government

Table 6.17. Ireland, tax revenues by sub-sectors of government

Table 6.18. Israel, tax revenues by sub-sectors of government

Table 6.19. Italy, tax revenues by sub-sectors of government

Table 6.20. Japan, tax revenues by sub-sectors of government

Table 6.21. Korea, tax revenues by sub-sectors of government

Table 6.22. Latvia, tax revenues by sub-sectors of government

Table 6.23. Lithuania, tax revenues by sub-sectors of government

Table 6.24. Luxembourg, tax revenues by sub-sectors of government

Table 6.25. Mexico, tax revenues by sub-sectors of government

Table 6.26. Netherlands, tax revenues by sub-sectors of government

Table 6.27. New Zealand, tax revenues by sub-sectors of government

Table 6.28. Norway, tax revenues by sub-sectors of government

Table 6.29. Poland, tax revenues by sub-sectors of government

Table 6.30. Portugal, tax revenues by sub-sectors of government

Table 6.31. Slovak Republic, tax revenues by sub-sectors of government

Table 6.32. Slovenia, tax revenues by sub-sectors of government

Table 6.33. Spain, tax revenues by sub-sectors of government

Table 6.34. Sweden, tax revenues by sub-sectors of government

Table 6.35. Switzerland, tax revenues by sub-sectors of government

Table 6.36. Türkiye, tax revenues by sub-sectors of government

Table 6.37. United Kingdom, tax revenues by sub-sectors of government

Table 6.38. United States, tax revenues by sub-sectors of government

Executive summary

In 2023, the average tax-to-GDP ratio of OECD countries declined by 0.1 percentage points (p.p.) to 33.9%. This was the second year in a row that the average tax-to-GDP ratio has declined slightly, although it remained above the level in 2019, prior to a challenging period for public finances in OECD countries that has included the COVID-19 pandemic, Russia’s illegal invasion of Ukraine and the highest level of inflation in OECD countries for 30 years. OECD countries continued to use tax policy to ease costof-living challenges in 2023 amid growing spending pressures related to long-term challenges such as climate change and population ageing, which will require higher revenues.

In this publication, taxes are defined as compulsory, unrequited payments to the general government or to a supranational authority. They are unrequited in that the benefits provided by governments to taxpayers are not normally allocated in proportion to their payments. Taxes are classified according to their base: income, profits and capital gains; payroll; property; goods and services; and other taxes. Compulsory social security contributions paid to general government are also treated as taxes. Revenues are analysed by level of government: federal or central; state; local; and social security funds. Detailed information on the classification of taxes is set out in the Interpretative Guide in Annex A.

Tax levels in 2023

Across OECD countries, tax-to-GDP ratios ranged from 17.7% in Mexico to 43.8% in France in 2023 Between 2022 and 2023, the OECD average tax-to-GDP ratio declined from 34.0% to 33.9%.

• In 2023, tax-to-GDP ratios increased from the previous year in 18 of the 36 countries for which preliminary data is available, declined in 17 countries and remained unchanged in one.

• The largest increase in 2023 was observed in Luxembourg, whose tax-to-GDP ratio rose by 2.7 p.p. due to higher revenues as a share of GDP from personal income tax (PIT) and social security contributions. The second-largest increase was in Colombia, where tax revenues rose by 2.6 p.p. as a result of higher revenues from corporate income tax (CIT).

• The largest declines in the tax-to-GDP ratio in 2023 occurred in Chile and Korea (of 3.2 p.p. and 3.1 p.p. respectively). In both cases, this was primarily due to a decline in income tax revenues The United States and Israel also recorded declines in their tax-to-GDP ratio larger than 2 p.p. Over the longer term, 29 OECD countries reported higher tax-to-GDP ratios in 2023 than in 2010, with the largest increases in Japan (8.2 p.p.), the Slovak Republic (7.6 p.p.) and Greece (7.5 p.p.). Among the remaining nine countries, Ireland’s tax-to-GDP ratio was 5.8 p.p. lower in 2023 than in 2010 while Hungary’s was 2.6 p.p. lower

Tax structures in 2022

In 2022, the latest year for which final tax revenue data is available for all OECD countries, social security contributions accounted for the largest share of tax revenues in the OECD, at just under one-quarter (24.8%), on average, while revenues from PIT accounted for the second-largest share, at 23.6%. VAT accounted for just over one-fifth of total revenues (20.8%), with other consumption taxes generating a further 10.8%. CIT accounted for 12.0% of total tax revenues in 2022, with property taxes (5.3%) and residual taxes accounting for the remainder

Between 2021 and 2022, the average share of income tax revenues (PIT and CIT combined) in total tax revenues increased by 1.4 p.p. to 36.5%, with the share of CIT in total tax revenues increasing over this period while the share of PIT declined. In 2022, the average share of social security contributions in the OECD average tax structure fell by 0.8 p.p. while the share of tax revenues from taxes on goods and services decreased by 0.4 p.p.

Changes by level of government

On average, subnational governments received a lower share of tax revenues in 2022 than in 2021. The central government’s average share of revenues rose from 53.5% to 53.7% of general government revenue in federal countries and from 63.6% to 64.6% in unitary countries between 2021 and 2022 In federal countries, 17.8% of tax revenues were received at state level and 7.3% at local government level on average in 2022 At state level, the average share of tax revenues ranged from 1.9% in Austria to 38.9% in Canada, while at local government level it ranged from 1.8% in Mexico to 15.8% in Switzerland In unitary countries, the share of local government revenues was 10.3% on average, ranging from 0.6% in Estonia to 35.1% in Sweden.

Health taxes in OECD countries

The Special Feature in this publication examines revenues from health taxes in OECD countries. Health taxes, defined by the World Health Organisation as ‘taxes levied on products that have a negative public health impact’, have emerged as a major focus of policy makers in public finances and health over the past two decades. This reflects the capacity of health taxes to meet two objectives: not only do they generate a modest but stable source of revenues to finance public spending but they have also been shown to be a cost-effective means of reducing consumption of unhealthy products and thus improving health outcomes. Although taxes on alcohol and tobacco are present in all OECD countries, taxes on sugar-sweetened beverages (SSBs) are relatively new and have not yet been implemented by all countries.

The Special Features uses granular data provided by countries for this edition of Revenue Statistics to examine revenues from excise taxes on alcohol, tobacco and SSBs between 2000 and 2022. Revenue data is a key input for designing and monitoring the effectiveness of health taxes, although revenue trends should be interpreted with caution as it may be difficult to clearly identify the underlying drivers. International comparison of revenue levels should also take into account differences in consumption patterns between countries.

On average across OECD countries, revenues from these three health taxes amounted to 0.74% of GDP and accounted for 2.24% of total tax revenues in 2022. In 27 of the 38 OECD countries, revenues from excise taxes on tobacco were the principal source of health tax revenues in that year. Revenues from health excise taxes have declined as a proportion of GDP between 2000 and 2022 on average across the OECD (especially since 2010), with the largest decline observed for excise taxes on alcohol.

1 Tax revenue trends 1965-2023

Chapter 1 provides information on trends in tax revenues in OECD countries, including changes in tax-to-GDP ratios, tax structures, taxes by level of government, non-wastable tax credits and financing of social security-type benefits

Revenue Statistics 2024 presents detailed internationally comparable data on tax revenues of OECD countries for all levels of government. The latest edition provides final data on tax revenues for the period from 1965 up to 2022, a year marked by Russia’s illegal invasion of Ukraine and the highest levels of inflation in OECD countries for over three decades. In addition, provisional estimates of tax revenues in 2023 are included for almost all OECD countries.1 OECD countries continued to use tax policy to ease cost-of-living challenges in 2023 amid growing spending pressures related to long-term challenges such as climate change and population ageing, which will require higher revenues (OECD, 2024[1]), (OECD, 2024[2]).

Box 1.1. Revenue Statistics in OECD countries – Definitions & classifications

In Revenue Statistics 2024, taxes are defined as compulsory, unrequited payments to the general government or to a supranational authority. Taxes are unrequited in the sense that benefits provided by government are not normally in proportion to their payments.

In the OECD classification, taxes are classified by the base of the tax:

• Income and profits (heading 1000)

• Compulsory social security contributions paid to general government that are treated as taxes (heading 2000)

• Payroll and workforce (heading 3000)

• Property (heading 4000)

• Goods and services (heading 5000)

• Other (heading 6000)

Greater detail on the tax concepts, the classification of taxes and the accrual basis of reporting is set out in the OECD Interpretative Guide in Annex A of Revenue Statistics 2024

All the averages presented in this summary are unweighted.

Tax-to-GDP ratios

Tax ratios for 2023

(provisional data)

According to provisional data provided by OECD countries for this report, tax revenues as a percentage of GDP (i.e. the tax-to-GDP ratio) were 33.9% on average in 2023, a decrease of 0.1 percentage points (p.p.) of GDP relative to 2022. This was the second consecutive small decline in the OECD’s tax-to-GDP ratio following a drop of 0.04 p.p. in 2022.

The tax-to-GDP ratio increased in 18 of the 36 countries for which a full set of preliminary data for 202 3 are available, declined in 17 and remained the same in one. However, the declines were larger than the increases on average (-1.4 p.p. versus 1.1 p.p.). The largest increases occurred in Luxembourg (2.7 p.p.), Colombia (2.6 p.p.) and Türkiye (2.5 p.p.). The largest decline in 2023 occurred in Chile, whose tax-toGDP ratio fell by 3.2 p.p., while declines also exceeded 2.0 p.p. in Korea (3.1 p.p.), Israel (3.0 p.p.) and the United States (2.4 p.p.).

Figure 1.1. Trends in tax-to-GDP ratios, 1965-2023p

Percentage of GDP

Notes: Data for 2023 are preliminary. The OECD average in 2023 is calculated by applying the unweighted average percentage change for 2023 in the 36 countries providing data for that year to the overall average tax-to-GDP ratio in 2022 The 2016 OECD average tax-to-GDP ratio includes the one-off revenues from stability contributions in Iceland. Excluding these revenues, the OECD average tax-to-GDP ratio in 2016 would have been 33. 1%.

Source: Table 3.1.

StatLink 2 https://stat.link/mvfquo

Tax-to-GDP ratios varied considerably across OECD countries in 2023 (Table 1.1). Key observations include:

• France had the highest tax-to-GDP ratio among OECD countries for the second consecutive year in 2023, at 43.8%. Denmark had the second-highest tax-to-GDP ratio (43.4%) while Mexico had the lowest tax-to-GDP ratio (17.7%).

• Luxembourg observed the largest increase in its tax-to-GDP ratio in 2023, of 2.7 p.p. This was largely due to a 1.2 p.p. increase in revenues from personal income tax (PIT) and a 0.8 p.p. increase in social security contributions (Figure 1.2).

• The increase in Colombia’s tax-to-GDP ratio (of 2.6 p.p.) was due to a 2.2 p.p. increase in revenues from corporate income tax (CIT), while the 2.5 p.p. increase in Türkiye was due to a 1.6 p.p. increase in taxes from goods and services and a rise of 1.1 p.p. in social security contributions.

• Chile observed the largest fall in the tax-to-GDP ratio across OECD countries between 2022 and 2023, with a drop of 3.2 p.p. that was primarily due to a decline in revenues from taxes on income and profits.

• The next-largest decline was observed in Korea (3.1 p.p.), where PIT revenues fell by 0.8 p.p., CIT revenues fell by 1.2 p.p. and revenues from taxes on goods and services fell by 0.7 p.p.

France Denmark

OECD average Türkiye Mexico

Table 1.1. Revenue Statistics: Key figures

.. Not available

1. The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes.

2. The provisional average for 2023 is calculated by applying the unweighted average percentage change for 202 3 in the 36 countries providing data for that year to the overall average tax-to-GDP ratio in 2022.

3. Calculated as 5000 Taxes on goods and services less 5111 Value added taxes.

4. Includes 1300 Unallocable between personal and corporate income tax, 3000 Taxes on payroll and workforce and 6000 Other taxes.

Figure 1.2. Changes in tax-to-GDP ratios, 2022-23p and 2010-23p

Percentage points

Note: Preliminary data for 2023 is not available for Australia and Japan. For these countries, the comparison shows data for 2021-2022 and 2010-2022

Source: Secretariat calculations based on Table 3.1.

StatLink 2 https://stat.link/a7jsin

The OECD average tax-to-GDP ratio was higher in 2023 than in 2010, when it was 31.5%. The tax-to-GDP ratio increased in 29 countries over this period (including data for 2022 in the cases of Australia and Japan) (Figure 1.2). The largest increases were seen in Japan (8.2 p.p.), the Slovak Republic (7.6%) and Greece (7.5 p.p.); increases of over 5 p.p. were also observed in Korea, Spain, Mexico, Portugal and Luxembourg In the remaining nine countries, the tax-to-GDP ratio decreased between 2010 and 2023. The largest fall occurred in Ireland, from 27.7% in 2010 to 21.9% in 2023, largely due to an exceptional GDP increase in 2015. The next largest drop occurred in Hungary (2.6 p.p.).

Changes in the tax-to-GDP ratio are driven by the relative changes in nominal tax revenues and nominal GDP (Box 1.2). From one year to the next, if tax revenues rise by more than GDP (or fall by less than GDP), the tax-to-GDP ratio will increase. Conversely, if tax revenues rise by less than GDP, or fall further, the tax-to-GDP ratio will fall. Therefore, a higher tax-to-GDP ratio does not necessarily mean that the amount of tax revenues has increased in nominal, or even real, terms.

In 2023, nominal tax revenues increased from the previous year in 31 out of the 36 OECD countries for which data is available, while nominal GDP increased in 33 out of 36 countries. In Denmark and Ireland, tax revenues rose in nominal terms while GDP shrunk, while the opposite was the case in the United States, Israel, Korea and Chile (Figure 1.3). In Norway, tax revenues and GDP both declined in nominal terms in 2023 relative to the previous year; its tax-to-GDP ratio declined because the decline in revenues was larger than the decline in GDP.

Changes between 2021 and 2022 are shown for Australia and Japan in Figure 1.3 because the tax-toGDP ratio is not available in 2023. Australia’s tax-to-GDP ratio rose by 0.2 p.p. between 2021 and 2022 while Japan’s rose by 0.6 p.p. with nominal tax revenues increasing by more than GDP in both countries

Box 1.2. Methodology: the tax-to-GDP ratio

The tax-to-GDP ratios shown in Revenue Statistics 2024 express aggregate tax revenues as a percentage of GDP. The value of this ratio depends on its denominator (GDP) as well as its numerator (tax revenues). The denominator – GDP – is subject to historical revision.

The numerator (tax revenues)

• For the numerator, the OECD Secretariat uses revenue figures that are submitted annually by correspondents from national Ministries of Finance, Tax Administrations or National Statistics Offices. Although provisional figures for most countries become available with a lag of about six months, there is a lag of around one and a half years before finalised data is available. Final revenue data for 2022 were received during the period May-August 2024

• In 35 OECD countries, the reporting year coincides with the calendar year. Three countries – Australia, Japan and New Zealand – have different reporting years. Reporting year 2022 spans Q2/2022-Q1/2023 in Japan and Q3/2022-Q2/2023 in Australia and New Zealand (Q = quarter).

The denominator (GDP)

• For the denominator, the GDP figures used for Revenue Statistics 2024 are the most recently available in October 2024 At that point, GDP figures for 2023 were available for all OECD countries.

• Using these GDP figures ensures a maximum of consistency and international comparability for the tax-to-GDP ratios reported

• The GDP figures are based on the OECD Annual National Accounts (ANA – SNA) for the 35 OECD countries where the calendar year is the same as the reporting year.

• Where the reporting year differs from the calendar year, annual GDP estimates are obtained by aggregating quarterly GDP estimates provided by the OECD Statistics Directorate for those quarters corresponding to each country’s fiscal (tax) year.

The average shown in this publication is an unweighted average of all countries for which data is available. The provisional average for 2023 is calculated by applying the unweighted average percentage change for 2023 in the 36 countries providing data for that year to the overall average taxto-GDP ratio for all OECD countries in 2022

Figure 1.3. Relative changes in nominal tax revenues and nominal GDP, 2022-23p Percent

Increase in tax to GDP ratio

Decrease in tax to GDP ratio

Note: In Türkiye, nominal tax revenues increased by 96% in 2023 while nominal GDP rose by 75%. Data for Australia and Japan show the change between 2021 and 2022 as preliminary data for 2023 was not available for these countries

Source: Secretariat calculations based on Chapter 4 (tax revenues) and T able 3.19 (GDP).

StatLink 2 https://stat.link/ebpo3h

Figure 1.4. Tax-to-GDP ratios in 2022 and 2023p

Percent of GDP

Note: Preliminary data for 2023 were not available for Australia and Japan.

Source: Secretariat calculations based on Table 3.1

Tax-to-GDP ratios for 2022 (final data)

StatLink 2 https://stat.link/de0ysv

The latest year for which tax-to-GDP ratios are based on final data and available for all OECD countries is 2022 (Figure 1.4). These data show that tax ratios varied considerably across countries:

• In 2022, France had the highest tax-to-GDP ratio (45.8%), followed by Norway (43.4%). Seven other countries had tax-to-GDP ratios above 40% (Austria, Finland, Italy, Sweden, Belgium, Denmark and Greece).

• Mexico had the lowest ratio at 16.8%, followed by Colombia (19.7%), Ireland (20.3%), Türkiye (20.9%) and Chile (23.8%). Four other countries had ratios below 30% in 2022: Australia, the United States, Switzerland and Costa Rica.

• The tax-to-GDP ratio in the OECD area as a whole (unweighted average) was 34.0% in 2022, unchanged from 2021.

• Relative to 2021, the tax-to-GDP ratio rose in 21 countries and fell in 17.

• The largest increases in the tax-to-GDP ratio were in Korea (2.2 p.p.) and Norway (2.1 p.p.). Chile, Hungary, United Kingdom and Greece were the only other countries where the increase exceeded 1.0 p.p.

• The largest declines occurred in Denmark (5.3 p.p.) and Poland (2.3 p.p.).

As concerns the average tax-to-GDP for OECD countries, a 0.6 p.p. increase in revenues from CIT between 2021 and 2022 was offset by declines of 0.3 p.p. in revenues from excises, of 0.2 p.p. in social security contributions and of 0.1 p.p. in revenues from PIT (Table 1.2).

Table 1.2. Average tax structure in OECD countries, selected years (unweighted average as % of GDP)

Note: Percentage share of major tax categories in GDP. Data are included from 1965 onwards for Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, Türkiye, United Kingdom and United States; from 1972 for Korea; from 1980 for Mexico; from 1990 for Chile, Colombia and Costa Rica; from 1991 for Hungary and Poland; from 1993 for Czechia and from 1995 for Estonia, Israel, Latvia, Lithuania, the Slovak Republic and Slovenia.

Source: OECD (2024), "Revenue Statistics: Comparative tables", OECD Tax Statistics (database)

Tax ratio changes between 1965 and 2022

Between 1965 and 2022, the average tax-to-GDP ratio in OECD countries increased from 24.9% to 34.0%, an increase of 9.2 p.p. (Figure 1.1). Before the first oil shock (1973 to 1974), strong, almost uninterrupted income growth enabled tax levels to rise in all OECD countries. In part, tax levels rose automatically through the effect of fiscal drag on PIT schedules. From 1975 to 1985, the average tax-to-GDP ratio in OECD countries increased by 2.9 p.p. After the mid-1970s, the combination of slower real income growth and higher levels of unemployment apparently limited the revenue raising capacity of governments. But during and after the deep recession that followed the second oil shock (1980), tax levels in European countries rose further to finance higher spending on social security and rein in budget deficits.

After the mid-1980s, most OECD countries substantially reduced the statutory rates of their personal and corporate income tax, although the negative revenue impact was often offset by reducing or abolishing tax reliefs. By 1999, the average OECD tax-to-GDP ratio had risen to 32.9%, the highest recorded level at that time. It fell back slightly between 2001 and 2004 then rebounded between 2005 and 2007 before falling back during the Global Financial Crisis in 2008 and 2009 The tax-to-GDP ratio increased in all but two years between 2010 and 2022 2 despite the impact of the COVID-19 pandemic in 2020-21. For more detailed analysis of the long-term evolution of tax revenues, please see the Special Feature in the 2023 edition of this report, which examines the buoyancy of tax revenues in OECD countries between 1980 and 2021 (OECD, 2023[3]).

The OECD average tax-to-GDP ratio conceals great variety between countries. In 1965, tax-to-GDP ratios in OECD countries ranged from 10.6% in Türkiye to 33.9% in France. By 2022, the corresponding range was from 16.8% in Mexico to 45.8% in France. The trend towards higher tax levels over this period reflects the need to finance a significant increase in public sector outlays in almost all OECD countries.

Tax structures

Tax structures are measured by the share of major taxes in total tax revenues In 2022, the tax structures of OECD countries varied. Eighteen countries raised the largest part of their revenues from income taxes (both corporate and personal), eleven countries raised the largest part of their revenues from social security contributions, and nine countries raised the largest part of their revenues from consumption taxes (including VAT). Taxes on property and payroll taxes played a smaller role in the revenue systems of OECD countries in 2022, both on average and in most countries (Figure 1.5).

Figure 1.5. Tax structures in 2022 (as % of total tax revenue)

Note: Countries are grouped and ranked by those where income tax revenues (personal and corporate) form the highest share of total tax revenues, followed by those where social security contributions, or taxes on goods and services, form the highest share.

Source: Secretariat calculations based on data in Chapter 4.

StatLink 2 https://stat.link/48coed

While the level of tax revenues has generally been rising on average in the OECD, the tax structure (or ‘tax mix’) has been remarkably stable over time. Nevertheless, several trends have emerged up to 2022 –the latest year for which data is available for all 38 OECD countries. These trends are discussed below.

Taxes on income and profits

On average, in 2022, OECD countries collected 36.5% of their tax revenues through taxes on income and profits (PIT and CIT taken together). Taxes on personal and corporate incomes remained the most important source of revenues to finance public spending in 18 OECD countries; in ten of these – Australia, Canada, Denmark, Iceland, Ireland, Mexico, New Zealand, Norway, Switzerland and the United States – the share of income taxes in the tax mix exceeded 40% in 2022.

Figure 1.6. Trends in tax structures (1965-2022, as % of total tax revenue)

Note: The OECD average tax revenue in 2016 from main categories includes the one- off revenues from stability contributions in Iceland. This predominately affects the average revenues from property taxes, as a percentage of total tax revenues, in that year only.

Source: Secretariat calculations based on Tables 3.8 to 3.14.

StatLink 2 https://stat.link/d8jage

Within taxes on income and profits, the share of PIT and CIT varies:

• Revenues from PIT generated 23.6% of total taxes on average in 2022 compared with around 30% in the 1980s. About two percentage points of this reduction can be attributed to the impact on the average of a number of relatively recent entrants to the OECD from Eastern Europe and Latin America, for which tax revenue data is only available from the 1990s onwards. These countries tend to have relatively low PIT revenues and high revenues from social security contributions or CIT, but this impact is only observed in the data after 1990.

• The variation in the share of PIT revenues between countries is considerable. In 2022, it ranged from 6.1% in Costa Rica to 44.0% in the United States and 55.8% in Denmark (Figure 1.5).

• CIT revenues represented between 8% and 9% of total tax revenues on average throughout the period from 1965 to 2003. They then increased to 11.3% in 2007 before dropping to 9.0% in 2010 after the Global Financial Crisis. They remained between 9.0% and 10.0% of total tax revenues until they increased to 10.3% in 2021 and 12.0% in 2022

• The share of CIT in total tax revenues in 2022 varied considerably across countries, from less than 6% (Estonia, Hungary and Latvia) to over 20% in Ireland (21.5%), Australia (21.8%), Mexico (23.0%), Chile (23.7%), Colombia (25.4%) and Norway (42.3%) Apart from the spread in statutory CIT rates, these differences are partly explained by institutional and country-specific factors, including:

o the degree to which firms are incorporated;

o the breadth of the CIT base; for example, some narrowing may occur as a consequence of generous depreciation schemes and tax incentives:

o the degree of cyclicality of the corporate tax system, for which one of the important elements is loss-offset provisions:

o the extent of reliance upon tax revenues from the exploitation of oil and/or mineral deposits; or

o other instruments to postpone the taxation of earned profits.

Social security contributions

Social security contributions accounted for 24.8% of total tax revenues on average across OECD countries in 2022. They exceeded 40% in Czechia, Slovenia and the Slovak Republic (45.9%, 42.8% and 41.6%, respectively). Australia and New Zealand do not levy social security contributions. There was wide variation across OECD countries in the relative proportions of social security contributions paid by employees and employers in 2022 (Figure 1.7):

• Nine OECD countries (Chile, Greece, Hungary, Israel, Lithuania, Luxembourg, Poland, Slovenia and Switzerland) raised more revenues from employee social security contributions while the rest raised more from employer social security contributions

• The highest share of employee social security contributions was in Lithuania, at 23.8% of total tax revenues. Employee social security contributions also amounted to over 15% of total revenues in Germany, Greece, Hungary, Japan, Poland and Slovenia. Denmark had the lowest share, at 0.1% of total revenues. Apart from Denmark, only Chile and Estonia had revenues from employee social security contributions of less than 5% of total revenues.

• The highest share of employer social security contributions in total tax revenues was in Estonia, at 31.8%. Employer social security contributions also exceeded 25% of total tax revenues in Czechia (28.3%) and Spain (25.2%). Denmark and Chile had the lowest shares, at 0.1% and 0.2% of total revenues respectively.

• The highest share of self-employed or non-employed social security contributions was in Czechia (8.4%), followed by the Netherlands and Poland, at 7.5% and 7.4% of total revenues respectively.

Figure 1.7. Composition of social security contributions, as % of total social security contributions, 2022

Note: Australia, Costa Rica, Colombia, Iceland, Mexico, and New Zealand are not included in F igure 1.7. Although Colombia, Costa Rica, Iceland and Mexico collect social security contributions, disaggregated data is not available. New Zealand and Australia do not levy social security contributions.

Source: Secretariat calculations based on data in Chapter 4.

StatLink 2 https://stat.link/ev3780

Property taxes

Between 1965 and 2022, the share of taxes on property fell from 7.9% to 5.3% of total tax revenues on average across the OECD (Figure 1.6). In Canada, Israel, Korea, the United Kingdom and the United States, property tax revenues amounted to more than 10% of total tax revenues in 2022. By contrast, property taxes accounted for less than 1% of total tax revenues in Czechia, Estonia and Lithuania.

Consumption taxes

• The share of taxes on consumption (general consumption taxes plus specific consumption taxes) fell from 38.4% to 31.5% between 1965 and 2022 (Figure 1.6).

• During this period, the composition of taxes on goods and services changed. A fast-growing revenue source has been general consumption taxes, especially VAT, which is imposed in 37 of 38 OECD countries.3

• General consumption taxes accounted for 21.4% of total tax revenues in 2022, compared with only 13.3% in the mid-1970s. In 2022, the vast majority of this was from VAT (20.8% of total tax revenues)

• The increased importance of VAT has counteracted the diminishing share of specific consumption taxes, such as excises and customs duties.

• Between 1975 and 2022, the share of specific taxes on consumption (mostly on tobacco, alcohol and fuels, as well as some environmentally-related taxes) more than halved, from 17.7% to 8.2% of total revenues. In 2022, excises were the largest single category of total revenues under this heading, accounting for 5.7% of total revenues (Figure 1.8). The Special Feature in Chapter 2 of this report examines trends in revenues from excises on alcohol, tobacco and sugar-sweetened beverages, which are commonly referred to as ‘health taxes’.

• Rates of taxes on imported goods were considerably reduced across all OECD countries, reflecting a global trend to remove trade barriers.

• Nevertheless, Hungary, Latvia, Slovenia, Slovak Republic and Poland (between 10%-13%), Greece (15.6%) and Türkiye (18.8%) still collected more than 10% of their tax revenues through taxes on specific goods and services in 2022.

Figure 1.8. Share of general consumption tax revenues (left panel) and specific consumption revenues (right panel) as % of total revenues, 1975-2022

Note: The unweighted average for each year includes all countries which report revenue in the categories shown in that year. The OECD averages for 2016 include the one-off revenues from stability contributions in Iceland.

Source: Secretariat calculations based on Chapter 4. StatLink 2 https://stat.link/zmth3v

Taxes by level of government

This section discusses the share of tax revenues attributed to the various sub-sectors of general government in 2022 The different sub-sectors are:

• Central government

• State government (federal and regional countries only)

• Local government

• Social security funds

• Supranational authorities (EU countries only)

The guidelines for attributing revenues to different levels of government are based on the final version of the 2008 System of National Accounts. These guidelines are discussed in the special feature S.1 in the 2011 edition of Revenue Statistics

Revenues of sub-national government in federal and unitary countries

Eight OECD countries have a federal structure. Among these countries, central government received 53.7% of total revenues on average in 2022. The second-highest share of revenues on average was received by social security funds, which are a sub-sector of general government, at 21.0% of total revenues, followed by 17.8% at the state level and 7.3% at the local level (Table 1.3).

Within countries with a federal structure, there was considerable variation around these averages:

• In 2022, the share of central government receipts in the eight federal OECD countries ranged from 28.9% in Germany to 80.0% in Mexico and 81.6% in Australia.

• In 2022, the share of the states ranged from 1.9% in Austria and 4.4% in Mexico to 38.9% in Canada. The share of local government varied from 1.8% in Mexico to 13.1% in the United States and 15.8% in Switzerland.

• Between 1975 and 2022, the share of central government revenues declined by over 12 p.p. in Belgium and by more than 5 p.p. in Spain

• The share of central government revenues increased in Austria by just under 14 p.p. over the same period. There was little change in Australia.

• Of the seven federal countries with social security funds, five increased the share of revenue between 1975 and 2022. The exceptions were Canada and Mexico, where the share declined between 1975 (1980 for Mexico due to data availability) and 2022.

Colombia and Spain, which are classified as regional rather than unitary countries because of their highly decentralised political structure, have very different revenue compositions by level of government. In Colombia, the share of central government receipts was 75.2% in 2022, with regional governments receiving 4.8% of total revenues and local governments receiving 11.8%. In Spain, the share of central government receipts in 2022 was 42.5% compared with 15.1% for regional government and 8.2% for local government.

Table 1.3. Attribution of tax revenues to sub-sectors of general government as % of total tax revenue, federal countries

Per cent

.. Not available

1. The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes.

2. Colombia and Spain are not constitutionally federal countries but both have a highly decentralised political structure, with high autonomy of their territorial entities.

The remaining twenty-eight OECD countries have a unitary structure (Table 1.4). In these countries, an average of 64.6% of revenues were derived at the central level in 2022, with social security funds accounting for 24.6%. A further 10.3% of revenues was raised by local government.

Among unitary OECD countries:

• The share of central government receipts varied from 31.1% in France to 93.6% in New Zealand in 2022

• The local government share ranged from 0.6% in Estonia to 35.1% in Sweden.

• Between 1975 and 2022, there were increases in the local government share in excess of 5 p.p. in six countries: France, Iceland, Italy, Korea, Portugal and Sweden. Decreases of 5 p.p. or more occurred in three countries: Ireland, Norway and the United Kingdom.

• Between 1975 and 2022, there were increases in the share of social security funds of 10 p.p. or more in France and Korea and corresponding decreases in Italy and Norway.

Table 1.4. Attribution of tax revenues to sub-sectors of general government as % of total tax revenue, unitary countries

Per cent

.. Not available

1. The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes.

Composition of central and sub-central government revenues

Figure 1.9 shows revenues from each major category of tax revenue for central and sub-central governments. For federal and regional countries, the sub-central level includes revenues received by both state and local governments. Figure 1.9 demonstrates that:

• Central government revenues in almost all OECD countries are predominantly derived from taxes on income and on goods and services, with a negligible share from property taxes.

• Property taxes provide a much larger share of revenues at the subnational level, and account for over 90% of revenues in four countries: Israel, Ireland, Greece and the United Kingdom.

• By contrast, the share of income taxes and taxes on goods and services is generally lower at the sub-central level, although over 90% of sub-central revenues in Finland, Luxembourg and Sweden was derived from income taxes in 2022

Figure 1.9. Composition of revenues of federal or central government (left) and sub-national government (right), 2022

Note: The left-hand panel (a) refers to only those taxes that are classified as central government taxes. Social security contributions paid to social security funds are excluded. The right-hand panel (b) refers only to those taxes that are classified as sub-central taxes (local and [where relevant] state taxes). Social security contributions paid to social security funds are excluded. Source: Secretariat calculations based on Tables 3.16 to 3.18.

StatLink 2 https://stat.link/96jnlo

Revenues paid to a supranational authority

The 22 member states of the European Union (EU) that are also members of the OECD collect taxes on behalf of the EU, as did the United Kingdom prior to 2020. These taxes primarily consist of customs duties and contributions to the Single Resolution Fund (SRF).4 Both taxes are collected on behalf of the EU by national tax administrations and are included in the total tax figures under headings 5123 and 5126 at the SUPRA level of government. In addition, they are shown as a memorandum item separately from the main figures since they represent a tax imposed by the EU and collected by national administrations. 5

Table 1.5 shows the level of taxes collected on behalf of supranational governments in EU countries that are also OECD members, divided into countries in the Euro area and other EU member countries.

Table 1.5. Levies collected on behalf of the European Union, as % of GDP

Non-euro area

.. Not available

Note: SRF figures may differ slightly from those published on the SRB website. These differences are primarily due to timing. Details on these revenues for each country can be found in Chapters 4 and 5.

1. In 2016, the figure includes the 2016 payment of 99.12 million euros and also a payment of 75.89 million euros which was due in Quarter 4 of 2015 but was paid in Quarter 1 of 2016. The figures in this table were reported by the Central Statistics Office and are gross amounts and therefore due to adjustments will differ from the figures reported on the SRB website, which are net figures.

2. The “Bank contribution to the unique European Resolution Fund” amount includes not only the European but also the National Resolution Fund, as required by the Eurostat classification.

3. Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

Source: Revenue Statistics 2023, supplemented by discussions with delegates.

In 2022, the combined total of payments collected for the EU was highest in Belgium and the Netherlands (both 0.5% of GDP). All other EU countries that are also members of the OECD collected revenues on behalf of the EU equivalent to 0.2% of GDP or higher. In all countries except Finland, France and Luxembourg, customs duties were the primary source of these revenues.

Non-wastable tax credits

OECD countries apply two kinds of tax credits to income taxes (both personal and corporate):

• Non-payable or wastable tax credits are those that can only ever be used to reduce or eliminate a tax liability. They cannot be paid out to either taxpayers or non-taxpayers as a benefit. They are, therefore, the same as a tax allowance or relief.

• Payable or non-wastable tax credits can be divided into two parts. One part is used to reduce or eliminate a tax liability in the same way as a wastable tax credit. The other part can be paid directly to recipients as a benefit payment when the value of the benefit exceeds the tax liability.

The OECD methodology for classifying non-wastable tax credits is set out in paragraphs 25 and 26 of the Interpretative Guide These state that only the part of a non-wastable tax credit that is used to reduce or eliminate a taxpayer’s tax liability should be subtracted in the reporting of tax revenues. This is referred to as the ‘tax expenditure component’ of the credit. In contrast, the part of the tax credit that exceeds the taxpayer’s tax liability and is paid to that taxpayer is treated as an expenditure item and not subtracted in the reporting of tax revenues. This part is referred to as the ‘transfer component’.

Table 1.6. Effect of alternative treatments of non-wastable tax credits, 2022

.. Not available

Note: In Revenue Statistics the tax revenue data are reported on a split basis, unless indicated otherwise.

1. The children’s tax credit is not regarded as a tax credit in Revenue Statistics and is treated entirely as an expenditure provision.

2. The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes.

3. Some non-wastable tax credits cannot be split into the transfer and tax expenditure components. Their total values have been added to the transfer component.

4. In Revenue Statistics, the tax revenue data for Chile are reported on a net basis.

5. In Revenue Statistics, the tax revenue data for Luxembourg and Slovak Republic are reported on a gross basis.

6. Please note that the non-wastable tax credit data for the United Kingdom is on a cash basis and includes estimates in some years. Please see the footnotes in the table for the United Kingdom in Chapter 5 for more information.

Table 1.6 provides information on non-wastable tax credits in 2022 for those countries reporting them in Revenue Statistics 2024 (it may be that some countries with non-wastable tax credits do not report them and thus do not appear in the table). It shows the amount of the non-wastable tax credits and their two components together with the results of using the figures to calculate tax revenue values and the associated tax-to-GDP ratios Table 1.6 also shows two alternative treatments for non-wastable tax credits:

• The ‘net basis’, which treats non-wastable tax credits entirely as tax provisions, so that the full value of the tax credit reduces reported tax revenues, as shown in columns 4 and 7.

• The ‘gross basis’ is the opposite, treating non-wastable tax credits entirely as expenditure provisions, with neither the transfer component nor the tax expenditure component deducted from tax revenues, as shown in columns 6 and 9. This is the approach followed by the GFSM and the SNA.

Table 1.6 shows that, with a few exceptions, the choice of method for reporting non-wastable tax credits has only a small impact on the ratio of total tax revenues to GDP. For countries with available data, the difference between the ratios on a net basis and on a gross basis only exceeds one percentage point for Germany and the United States, and is between half a percentage point and one percentage point for Canada, Czechia, France, New Zealand and the United Kingdom.

Financing of social security-type benefits in OECD countries

A memorandum item6 in Revenue Statistics 2024 describes the financing of social security-type benefits in OECD countries. Unlike social assistance benefits, which are funded from general government revenues, social security-type benefits are funded via contributions to social security funds or to private insurance schemes, or by other earmarked sources of funding. These sources of financing include:

• Earmarked financing from tax revenues:

1. Social security contributions (category 2000 in the OECD classification)

2. Other taxes earmarked for social security-type benefits

• Earmarked financing from non-tax revenues:

3. Voluntary contributions to the government (VCG)

4. Compulsory contributions to the private sector (CCPS)

Figure 1.10 shows the relative contribution of each of these sources to financing for social security-type benefits in OECD countries, based on data provided by countries for inclusion in the memorandum item.

Figure 1.10. Composition of earmarked financing for social security-type benefits, 2022

Note: Two countries (Australia and New Zealand) provide social benefits via social assistance rather than via social security, so are not included in the table. In addition, the Netherlands is not included in the figure as complete data on mandatory contributions was not available in Revenue Statistics. The figures for Denmark should be interpreted with care as the level of social security -type benefits is very small compared to the level of social assistance benefits. Further, there may be borderline issues in some countries when distinguishing between quasi -compulsory and voluntary schemes.

Source: Secretariat calculations based on chapter 4

StatLink 2 https://stat.link/nl6cgu

Taxes represent the largest source of earmarked financing for social security-type benefits, predominantly via social security contributions. Together, social security contributions and other earmarked taxes account for over 90% of the financing of social security-type benefits in 27 of the 35 OECD countries that provide this level of data (including 10 countries where they account for 100%). In the remaining eight OECD countries that provide this data, six countries report that compulsory contributions to the private sector play a significant role in financing social-security type benefits, including Chile (where they account for 85.5%), Colombia (69.3%) and Switzerland (53.2%) Voluntary contributions accounted for a significant share of funding in only a few countries, notably the United Kingdom (19.4%) and Denmark (71.8%).

SSCs Other taxes Compulsory contrib. Voluntary contrib. All taxes

Figure 1.11 shows tax-to-GDP ratios (as in Table 1.1 and Figure 1.4) both exclusive of earmarked funding for social security-type benefits (i.e. tax-to-GDP ratios less social security contributions and other earmarked taxes) and inclusive of all non-tax earmarked financing for social security-type benefits (i.e. taxto-GDP ratios – including social security contributions and other earmarked taxes – plus compulsory contributions to the private sector and voluntary contributions to government).

The countries with the largest share of social security-type schemes financed by non-tax earmarked contributions are Switzerland (8.1% of GDP), Iceland and Chile (6.1% and 5.8% respectively), which materially affects their rankings:

• Switzerland has a relatively low tax-to-GDP ratio among OECD countries, at 26.9%, but its combined ratio is just below halfway in the OECD distribution

• Iceland has a tax-to-GDP ratio of 35.2%, in the top-third of OECD countries, and a combined ratio of 41.3%, which is the ninth-highest in the OECD.

• Chile has the fifth-lowest tax-to-GDP ratio at 23.8% and the eighth-lowest combined ratio at 29.6%

Figure 1.11. Tax-to-GDP ratios and earmarked social security financing (% of GDP, 2022)

Note: The Netherlands are not included in the figure as complete data on social security financing in the Netherlands were not available. Source: Secretariat calculations based on data in Chapter 4.

StatLink 2 https://stat.link/5c3kn7

Excluding earmarked financing for social security benefits from the tax-to-GDP ratio does not affect Australia and New Zealand, where benefits are funded out of general taxation. Figure 1.11 highlights that the largest share of earmarked funding for social security-type benefits is seen in France, at 25.1% of GDP, as indicated by the difference between the highest and lowest points on the figure. Belgium, the Slovak Republic and Slovenia have the next highest shares, at between 15% and 17% of GDP.

References

OECD (2024), OECD Economic Outlook, Volume 2024 Issue 1, OECD Publishing, Paris, https://doi.org/10.1787/69a0c310-en

OECD (2024), Tax Policy Reforms 2024: OECD and Selected Partner Economies , OECD Publishing, Paris, https://doi.org/10.1787/c3686f5e-en

OECD (2023), Revenue Statistics 2023: Tax Revenue Buoyancy in OECD Countries, OECD Publishing, Paris, https://doi.org/10.1787/9d0453d5-en.

OECD (2022), Revenue Statistics 2022: The Impact of COVID-19 on OECD Tax Revenues, OECD Publishing, Paris, https://doi.org/10.1787/8a691b03-en

OECD (2021), Revenue Statistics 2021: The Initial Impact of COVID-19 on OECD Tax Revenues, OECD Publishing, Paris, https://doi.org/10.1787/6e87f932-en

Notes

1 At the time Revenue Statistics 2024 was published, provisional data on tax revenues in 2023 for Australia was not available nor were provisional figures on social security contributions in Japan

2 In 2016, Iceland received revenues from one-off stability contributions from entities that previously operated as commercial or savings banks and were concluding operations. The revenue from these contributions led to unusually high tax revenues for a single year and consequently, Iceland’s tax-to-GDP ratio rose from 35.1% in 2015 to 50.3% in 2016 before dropping to 37.1% in 2017. This led to an artificial high in the OECD average tax-to-GDP ratio in 2016 of 33.5%. Without these one-off revenues in Iceland, the OECD average tax-to-GDP ratio would have been 33.1%, an increase of 0.2 p.p. relative to 2015.

3 The terms “value-added tax” and “VAT” are used to refer to any national tax that embodies the basic features of a value-added tax by whatever name or acronym it is known e.g. “Goods and Services Tax” (“GST”).

4 The Single Resolution Fund (SRF) has been in place since 2015. Countries in the Eurozone are required to make SRF contributions under the Single Resolution Mechanism (Regulation (EU) No 806/2014). Contributions are paid on an ex-ante basis and contributions are transferred from the national authorities to the SRF. So far, contributions have been collected for the years 2015 to 2023.

5 In addition, EU civil servants pay income taxes and social security contributions directly to the EU. These revenues are not included in the data for total tax revenues in this publication as they are not paid to or collected by a national government. However, for the four countries with the highest number of EU civil servants (Belgium, Luxembourg, Italy and Germany), a memorandum account at the end of the respective country table in Chapter 5 provides information on the scale of these payments.

6 The financing of social security-type benefits is shown in Table 4.77 on a comparable basis (percentage of GDP) and in Table 5.39 on a national currency basis.

2 Health taxes in OECD countries

Chapter 2, the Special Feature of this report, examines the growing prominence of health taxes in OECD countries and their importance within the revenue mix. Using detailed Revenue Statistics data on excise taxes on alcohol, tobacco and sugar-sweetened beverages, the chapter investigates how these revenues evolved in the period from 2000 to 2022.

Introduction

Over the past 20 years, OECD countries have reconceptualised existing taxes and introduced new taxes in response to a growing awareness of the impact that taxation can have on health outcomes. The concept of ‘health taxes’ has emerged to describe fiscal instruments whose purpose is not only to generate public revenues but also to reduce consumption of products that can have harmful effects on the health of consumers and society at large. This two-fold impact makes health taxes of interest both to fiscal policymakers and health policymakers in OECD countries and beyond.

The purpose of this Special Feature is to track recent trends in revenues from health taxes in OECD countries, benefitting from the granular data provided by countries for this edition of Revenue Statistics . In so doing, the report (and accompanying Revenue Statistics database) addresses a specific constraint on the analysis of health taxes, namely the absence of comprehensive and standardised data on revenues from health taxes over time that facilitates monitoring and benchmarking within and across countries. The objective of the Special Feature is not to carry out in-depth analysis, derive specific conclusions or present policy recommendations concerning the design of health taxes but rather to enhance the evidence base for specialists working in this area

The chapter is structured as follows. The first section defines health taxes and outlines their emergence as a tool for fiscal and health policy in OECD countries. The second section explains the importance of analysing revenues from health taxes while acknowledging the limitations of this analysis. The third section uses Revenue Statistics data to track trends in revenues from health taxes across OECD countries. A fourth section concludes.

Defining health taxes

This Special Feature adheres to the World Health Organisation definition of ‘health taxes’, namely ‘[T]axes levied on products that have a negative public health impact’ (World Health Organization, 2024[1]). The classification of taxes in this chapter follows that set out in the OECD’s Interpretative Guide, whose definition of taxes is consistent with that of the System of National Accounts: compulsory, unrequited payments to the general government or to a supranational authority

Health taxes are generally levied in the form of excise duties, which (unlike other general goods and services taxes) are levied only on specific goods. Although excise taxes are generally levied on producers rather than consumers, they nevertheless change the price of the product for consumers if producers pass on the taxes. In the case of health taxes, excise taxes can be levied directly on the component that creates negative health effects (e.g. alcohol volume or grams of sugar, salt or saturated fat) or on the product that contains the component that is harmful to consumers’ health (e.g. per litre of soft drink or alcoholic beverage or per pack of cigarettes). They can also be levied when these components or products are used as inputs in the production process.

Excise duties apply to goods regardless of whether they are produced domestically or imported, and they do not apply to exported products Excise taxes interact with customs duties as well as the value-added tax (VAT); although this chapter focuses on revenues from excise taxes rather than customs duties and VAT, Box 2.1 provides additional detail on this interaction.

Since the Interpretative Guide classifies taxes according to their base, it does not include a specific category for ‘health taxes’. However, detailed data on tax revenues provided by countries through the Revenue Statistics initiative and classified according to the Interpretative Guide allows for the identification of different tax types that fall under this definition. As was the case with the Special Feature on environmental taxation in the 2019 edition of the report (OECD, 2019[2]), this chapter demonstrates the

value of harmonised data in providing a comprehensive and internationally comparable view of revenues from taxes that have in common a specific policy objective of growing importance to OECD countries.

Notwithstanding the potential breadth of the WHO definition of health taxes,1 this chapter will focus on excise taxes on alcohol, tobacco and sugar-sweetened beverages (SSBs)2. Of these three types of health tax, taxes on alcohol and tobacco predate the term ‘health taxes’ by many centuries, over which time they have been implemented worldwide. Taxes on SSBs, on the other hand, are a relatively recent innovation and are less common globally, although this is changing rapidly. All OECD countries tax alcohol and tobacco while an increasing number tax SSBs, although data is only available for 12 countries in this chapter (OECD, 2022[3]).3

The emergence of ‘health taxes’ as a concept first arose from developments not in tax policy but in the health sector (Lauer et al., 2022[4]). The effectiveness of what were sometimes referred to as ‘sin taxes’ on tobacco and alcohol as health interventions became a topic of interest when policy makers began to take a more comprehensive view of public health systems. Amid widespread evidence that taxation was a costeffective mechanism for improving health outcomes by reducing the consumption of harmful goods (and encouraged by broader fiscal challenges in the wake of the Global Financial Crisis), policy makers focused on the taxation of SSBs to improve nutritional outcomes and tackle rapid growth in the prevalence of obesity (Lauer et al., 2022[4]).

Health taxes thus have two principal purposes. On the one hand, they have been shown to generate a modest but stable source of revenues to finance public spending (Lauer et al., 2022[4]). On the other, they aim to reduce consumption of unhealthy goods for public health purposes. A tension exists within these objectives, namely that lower consumption of a specific good (ceteris paribus) entails a reduction in revenues. Although the design of health taxes is beyond the scope of this chapter,4 factors that may influence the rate at which policy makers set health taxes as they balance these objectives will be influenced (inter alia) by the elasticity of demand with respect to prices of the different products and the externalities and internalities associated with consumption of the product.

The question of elasticities demonstrates how the dual impact of health taxes can influence the design of health taxes If demand for a product is inelastic (i.e. demand diminishes relatively little in response to prices), governments may be able to increase tax rates on that product to generate higher revenues without significantly reducing demand (absent an increase in cross-border shopping, smuggling or illegal production, as discussed below). However, this same inelasticity would imply that health taxes would have to be increased significantly before they trigger a strong demand response.

In practice, demand for alcohol and tobacco has generally been found to be relatively inelastic with respect to prices, while demand for SSBs is more elastic (Burton et al., 2024[5]). However, elasticity estimates for the different taxes vary in countries at different incomes levels, as well as across different income groups; elasticities tend to be higher among low-income individuals, implying their consumption declines more in response to increased prices (Fuchs, 2019[6]).

Meanwhile, policymakers may want to set rates that account for the adverse impact of certain products on consumers and society. In the case of health taxes, internalities can be understood as the harm individuals inflict upon themselves on account of their failure to recognise the adverse short- and long-term consequences of consuming these products. Externalities, meanwhile, include the economic costs5 for society but not taken into account by smokers. They may include costs for the smokers themselves as well as costs for individuals, such as the impact of passive smoking or the emotional burden of caring for or losing a loved one due to illness (DeCicca, Kenkel and Lovenheim, 2022[7]).

Setting excise rates to reflect the full range of externalities is very complicated. Some of the external costs are already priced into social insurance mechanisms and it is challenging to value in monetary terms the lives of (for example) smokers and second-hand smokers that are lost as a result of smoking. Instead of seeking precise external cost estimates, simpler approaches include tax level targets or smoking reduction

goals. Taxes account for at least 60% of the purchase price of a pack of cigarettes in almost all OECD countries, while the World Health Organisation recommends this proportion be at least 75% (OECD, 2022[3])

The concept of health taxes thus brings together old and new taxes on a wide range of products under a similar logic that recognises the impact of these instruments on consumer behaviour, health outcomes and public finances. These impacts are likely to span a range of timeframes, including from a fiscal perspective: a tax may not generate significant revenues in the short term but may achieve long-term savings for the government on the basis that healthier lifestyles would reduce public health costs over time.

Box 2.1. Excises and other health taxes

Excise taxes, classified under category 5121 of the Interpretative Guide (Annex A), are taxes levied as a product specific unit tax on a predefined limited range of goods. Excises are often levied on nonessential or luxury goods, alcoholic beverages and tobacco products, as well as on energy products. Excises may be imposed at any stage of production or distribution and are usually assessed as a specific charge per unit based on characteristics by reference to the value, weight, strength, or quantity of the product. However, excises are not the only taxes imposed on these products, which will also be subject to value-added tax (VAT), customs and other import duties. Australia and New Zealand, for example, levy ‘excise-equivalent customs duties’ on alcohol and tobacco that are included in this analysis.6

Value-added tax (VAT) is a general consumption tax, which cannot be classified as a health tax. It is therefore not discussed in this chapter. It is, however, important to bear in mind how VAT interacts with excises and the impact this may have on government revenues as well as on the health-related objectives. In most cases, excise duties are part of the VAT base because a VAT is generally levied on the total value of the products, inclusive of excise duties.

In these situations, an increase in excise duties will also increase the VAT burden and revenue on the targeted products. The higher the rate of VAT, the greater the impact of (the increase in) excise duty that has to be paid. On the other hand, if health taxes reduce demand for a certain good, this will reduce revenues from both excises and VAT. The close relationship between VAT and excises implies that health taxes and VAT should ideally be evaluated jointly. For instance, applying a reduced VAT rate on SSBs may partly offset the impact of excises on the same products and would undermine the coherence of tax and health policy.7

Meanwhile, the customs duties that countries apply to imports of harmful products also generate revenues for the government and affect the prices of these goods at the border. This chapter does not cover customs duties in its data and analysis but these revenues can be significant.

Like other excise duties, health taxes are usually levied at the producer level and not on final consumers. This reduces the administrative burden and the risk of non-compliance but creates opportunities for suppliers to manipulate the tax base and affect prices, thereby undermining the effectiveness of health taxes in reaching its health objectives.

Why track revenues from health taxes (and reasons for caution)

The recognition that health taxes have the capacity to generate revenues and improve health outcomes –and that these impacts may occur over different timeframes – entails trade-offs that policy makers must manage. Although revenues from health taxes are only part of the equation, high-quality and standardised

revenue data is an essential input for understanding the role of health taxes in public finances and for evaluating their effectiveness. Nonetheless, revenue trends need to be treated with caution.

Although (as will be discussed below) revenues from health taxes amount to a relatively small proportion of GDP and are a small component of the overall tax mix in OECD countries, a reduction in revenues from these taxes where these previously represented a steady source of income for the government may have adverse consequences for the financing of public services. Over the longer term, a reduction in health revenues may be offset by future savings in health expenditure or higher revenues from a more productive population if the health tax succeeds in improving a specific health outcome or outcomes.

Revenue data is a key input for designing and monitoring the effectiveness of health taxes. The revenue impact of a health tax will reflect a range of design aspects, including tax rates, the tax structure, and the tax base. Health tax revenues will not only depend on the design of the health taxes but also on the levels of consumption (e.g. smoking prevalence) and other economic elements (e.g. extent of cross-border shopping). While health tax revenues on their own do not allow to infer whether a health tax is designed effectively, they constitute an important variable to assess a country’s health tax policy.

Despite the importance of tracking revenues from health taxes, analysing this data requires caution. A decline in revenues from a health tax on a specific product might be a sign of success if the purpose of the tax were to deter individuals from consuming that product. However, the positive health impact will be diminished if consumers switch to a cheaper product that is a close substitute which is not taxed in the same way and itself has adverse health impacts, such as from cigarettes to vaping.

Another factor that may not be apparent from the revenue data is the extent to which a health tax is passed on to consumers. As mentioned above, excises are generally applied at the producer level; the extent to which retailers pass on the health tax to consumers through higher prices will affect the impact on revenues and health outcomes. Numerous factors affect the extent of ‘pass-through’, including the structure of the industry, the possibility of tax avoidance and the specific design of the tax (Belloni and Sassi, 2022[8]). If producers absorb a higher excise tax within their profit margin, the increase in the rate may not lead to the intended decline in consumption.

The impact of health taxes on revenues (and health outcomes) will be affected by individuals who cross international borders to buy a specific product in response to differences in prices between the two jurisdictions that may be related to lower tax rates. Attesting to the potential scale of this phenomenon, (Hillion, 2024[9]) estimates that border closures related to the COVID-19 pandemic increased domestic tobacco sales in France by 9.5%, compared to the counterfactual if borders had stayed open An analogous phenomenon may occur within countries where neighbouring sub-national jurisdictions impose health taxes at different rates (Bollinger and Sexton, 2023[10])

In addition to legal transactions, revenues may also be affected if products are smuggled across borders to avoid taxes. Illicit production and sale of a particular good within a country’s borders will also result in foregone revenues as well as (potentially) worse health outcomes if the product is sub-standard.

Trends in revenues from health taxes in OECD countries

This section shows trends in health tax revenues across OECD countries. As explained in Box 2.2, this data was submitted by delegates for this edition of Revenue Statistics . It covers the period from 2000 up to 2022, the most recent year for which final Revenue Statistics data is available for all OECD countries. Figures 2.1-2.3 show revenues from taxes on alcohol, tobacco and SSBs as a percentage of GDP and total government revenues (i.e. their weight within the tax mix) in 2022 as well as trends in revenues from health taxes since 2000. Table 2.A.1. sets out which countries are included in the respective graphs.

As noted above, the results shown in this section need to be interpreted with caution. First of all, these results only include revenues from excises. Notably, they do not include taxes on imports of alcohol, tobacco and SSBs, which means they may understate the taxes levied on these products. Moreover, there are challenges with the comparability of the data that are explained further in Box 2.2.

Box 2.2. Data on health tax revenues: availability and comparability challenges

While there is a clear rationale for tracking revenues from health taxes, comparing revenues from health taxes across countries and over time has been challenging in the absence of a centralised repository for data on health taxes.

The revenue data for excise taxes shown in this chapter was provided as part of the data submission for this edition of Revenue Statistics. OECD countries are not required to report revenues from specific excises but provided significantly more-granular data on revenues from health taxes to inform this Special Feature, meaning that the results shown in this chapter have not been published previously here or elsewhere.

Although data has been provided by all countries, countries may not have been able to provide data on all revenues from health taxes. This might be because some health taxes are collected at a sub-national level and not reported to Revenue Statistics with sufficient granularity to be included in the analysis. This is the case for the United States, for example, which taxes alcohol and tobacco at a federal, state and local level but only taxes SSBs at a local level; the disaggregation of revenues from SSBs at local level is not available for this analysis

Differences in how OECD countries label or the extent to which they report revenues from health taxes limits the comparability of revenues from health taxes across countries. Even within the categories chosen for analysis in this Special Feature – alcohol, tobacco and SSBs – there are differences and gaps across countries that limit the comparability of this data.

For example, OECD countries often may not differentiate between taxes on different alcohol products when reporting revenues. Some might report a single figure for revenues from taxes on alcohol while others will specify revenues from taxes on certain specific alcohol products – wine, beer or spirits for example – but not others.

The variance is greatest in the domain of SSBs. As noted above, although many OECD countries have introduced taxes on SSBs, the breadth of coverage differs significantly and not all countries report revenues from SSBs on a disaggregated basis, notably in cases where the taxes are implemented subnationally.

Further challenges may arise depending on which level of government has responsibility for excises. If a sub-national government has responsibility, issues such as missing data and differences in classification may be magnified considerably.

Secondly, caution is required when comparing revenues across countries for reasons that extend beyond these data challenges. Relatively high (low) revenues from a specific health tax may indicate that consumption of that product is relatively high (low) rather than that product being taxed more or less effectively. As an example of how prevalence varies across OECD countries, the proportion of individuals aged 15 and over that smoke daily ranges from 7.2% in Iceland to 28.0% in Türkiye according to (OECD, 2023[11]). In addition, it should not be assumed that a higher (lower) level of revenues from health taxes in a country or countries is a result of higher (lower) tax rates.

A range of other factors may affect the revenue trends shown in the graphs. For example, a decline in revenues might attest to the success of a tax whose principal objective is to reduce consumption of a

specific product but it may also (for example) be a consequence of an increase in the number of consumers acquiring the product abroad. Depending on the denominator, the decline may also be a result of economic growth (when considering revenues as a share of GDP) or increases in revenues from another tax or taxes (when considering revenues as a share of total tax revenues).

Revenues from health taxes across OECD countries in 2022

Figure 2.1 shows the breakdown of revenues from excise taxes on alcohol, tobacco and SSBs across OECD countries as a percentage of GDP (Panel A) and as a share of total government revenues (Panel B) in 2022. For both indicators, there is wide variation across OECD countries in terms of the overall weight of health taxes. Annex Figures 2.A.1 and 2.A.2. show the disaggregation of revenues from the different excise taxes by product in 2022 both as a share of GDP and percentage of total tax revenues.

Total revenues from the three health excise taxes ranged from 0.19% of GDP in the United States to 1.42% in Latvia, while they ranged from 0.70% of total tax revenues in the United States to 4.62% in Latvia and 4.74% in Türkiye. On average across OECD countries, the health excise taxes on tobacco, alcohol and SSBs equated to 0.74% of GDP and generated 2.24% of total tax revenues in 2022.

In 27 of the 38 OECD countries, revenues from excise taxes on tobacco were the principal source of health tax revenues, exceeding 50% of total revenues in 25 of these. As a percentage of GDP, revenues from tobacco taxes ranged from 1.15% in Luxembourg to 0.05% in Costa Rica. As a proportion of total tax revenues, they ranged from 3.0% or more in Türkiye and Luxembourg to 0.20% in Costa Rica.

In the remaining countries, excise taxes on alcohol were the next-largest source of revenues in 2022. Revenues from excises alcohol ranged from above 0.6% of GDP in Latvia, Estonia, Lithuania and Iceland to 0.1% in Switzerland. As a proportion of total tax revenues, they ranged from above 2% in Latvia, Colombia, Lithuania and Estonia to below 0.2% in Switzerland, Austria and Italy.

Revenues from excises on SSBs in the 12 countries for which data for 2022 is available ranged from 0.69% of total tax revenues in Mexico to less than 0.05% of total revenues in France, the United Kingdom and Ireland. As a share of GDP, they exceeded 0.1% in Mexico and Costa Rica, at 0.12% and 0.11% respectively.

Figure 2.1. Level and structure of health taxes in the OECD in 2022

Note: Health excise tax revenue is the sum of reported tax revenue collected from excise taxes levied on tobacco, alcohol and SSBs (category 5121) for all reporting countries and years. The OECD average for health excise tax revenue is calculated based on 38 countries for tobacco, 37 countries for alcohol and 12 countries for SSBs (Annex Table 2.A.1.shows a list of reporting countries).

Source: Authors’ calculations based on data provided to OECD Revenue Statistics 2024 for all countries and years.

StatLink 2 https://stat.link/5try73

Long-term trends in health tax revenues

Figure 2.2 shows trends in revenues from total health taxes across the three categories on average across OECD countries from 2000 to 2022 as a share of GDP. Revenues from health excise taxes have declined as a proportion of GDP over this period on average across the OECD (especially since 2010) due to declines in revenues from excise taxes on alcohol and tobacco. Although a full analysis of these revenue

trends is beyond the scope of this chapter, the declines have coincided with significant changes in both the consumption and the taxation of tobacco and alcohol over this period.

According to (OECD, 2023[11]), the proportion of the population aged 15 and over that smokes daily has fallen sharply across the OECD on average, from 20.6% in 2011 to 15.9% in 2021, with 32 of the 37 countries for which data is available observing a decline. Meanwhile, average alcohol consumption in OECD countries fell from 8.9 litres per person in 2011 to 8.6 litres per person in 2021, declining in 23 countries over this period.

According to the biennial Consumption Tax Trends publication, which tracks excise rates on various tobacco and alcohol products, there has been an upwards trend in excise tax rates across the OECD since 2000.8 However, these rates are expressed in units of currency, meaning that inflation may have eroded the real value of excise duties and caused them to fall as a proportion of GDP in some countries. As with other taxes, indexing health excises is an important means of ensuring their effectiveness as a mechanism for both generating revenues and reducing consumption (OECD, 2024[12]).

Revenues from tobacco taxes, which is the largest source of revenues from health taxes among the three categories across the time period, declined from 0.57% of GDP in 2000 to 0.47% in 2022. Revenues from tobacco excises demonstrate the greatest degree of volatility over this period, with a notable increase in revenues from 2007 to 2011 declining in most years from 2012 onwards. The aforementioned trend for higher excise rates was particularly pronounced for tobacco products; for example, the excise rate on cigarettes doubled in nominal terms between 2012 and 2022 in all but three of the 30 countries for which data for 2012 is available, and it increased by more than 200% in ten countries.

On average across OECD countries, the largest decline (in relative and absolute terms) across the three excise types occurred in revenues from excises on alcohol, which declined steadily from 0.40% of GDP in 2000 to 0.26% in 2022. Revenues from SSBs have been stable as a share of GDP (at around 0.05%) during the period under analysis despite the gradual expansion of SSBs over time.

Figure 2.3 shows the changes in health tax revenues between 2000 and 2022 as a share of GDP by OECD country. Panel A shows changes in combined health tax revenues across individual countries while Panels B, C and D show changes in each of the three health taxes under consideration over this period. For each Figure, countries are ranked according to the level of revenues in 2022 in descending order, left to right.

Figure 2.2. OECD average revenues from the three difference categories of health taxes, 2000-2022

Percentage of GDP

Note: Tax revenue from excise taxes levied on tobacco, alcohol and SSBs (category 5121) are included for all reporting countries and years. The OECD average is computed using countries reporting positive excise taxes. See Table 2.A.1 for a list of reporting countries in 2000, 2010 and 2022.

Source: Authors’ calculations based on data provided to OECD Revenue Statistics 2024 for all countries and years.

StatLink 2 https://stat.link/02g8bt

Combined health tax revenues fell between 2000 and 2022 as a share of GDP in all but five countries: Czechia, Slovenia, Mexico, Switzerland and Costa Rica. In Czechia and Slovenia, the increases (of 0.01 p.p. and 0.21 p.p., respectively) were due to an increase in excise revenues from tobacco. Switzerland observed increases in revenues from tobacco and alcohol excises (of 0.26 p.p. and 0.05 p.p., respectively) while revenues from tobacco and SSBs increased slightly in Costa Rica. In Mexico, revenues increased as a share of GDP in all three categories (it introduced excises on SSBs in 2014).

Declines of 0.5% of GDP or more in health tax revenues as a percentage of GDP occurred in Ireland (1.29 p.p.), Luxembourg (0.75 p.p.), Norway (0.70 p.p.) and Denmark (0.51 p.p.). In Ireland, excise revenues from both tobacco and alcohol declined by 0.73 p.p. and 0.56 p.p. respectively. In Norway, there was a 0.33 p.p. decline in revenues from tobacco excises, a 0.30 p.p. decline in excises in alcohol and a 0.07 p.p. decline in revenues from excises on SSBs, while in Denmark revenues from tobacco excises declined by 0.31 p.p. and from excises on alcohol by 0.20 p.p. The decline in Luxembourg was largely due to a 0.73 p.p. decline in revenues from excises on tobacco between 2000 and 2022.

Across the three categories, 31 countries observed a decline in revenues from excises on alcohol as a share of GDP between 2000 and 2022, while 22 observed a decline in revenues from excises on tobacco. Of the eleven countries that reported revenues from excise taxes on SSBs in 2022 to OECD Revenue Statistics for this edition of the report, only two countries (Belgium and Netherlands) reported a decline in revenues from this category between 2000 and 2022. Relatively large increases in revenues from SSBs

as a share of GDP were observed in Mexico and Costa Rica (due to the implementation of excises on SSBs), although even in these countries the level is low relative to revenues from excises on alcohol and tobacco. Revenues from excises on SSBs declined sharply in Norway because the SSB excise tax was repealed in 2021.

Figure 2.3. Changes in the level of revenues from the different health taxes between 2000 and 2022 by OECD country

Percentage of GDP

Note: Health excise tax revenue is the sum of reported tax revenue collected from excise taxes levied on tobacco, alcohol and SSBs. The estimates of total health excise tax revenue raised are based on data reported by the countries (see Table 2.A.1 in the annex for a list of reporting countries). The OECD average is based on 37 OECD countries reporting at least on e health excise tax revenue in 2000 (excluding Türkiye due an absence of data). Health excise tax revenue data are sourced from OECD Revenue Statistics (category 5121) for the 37 OECD countries displayed.

Source: Authors’ calculations based on data provided to OECD Revenue Statistics 2024 for all countries and years.

StatLink 2 https://stat.link/c4ikhd

Conclusion

Health taxes have emerged as a potentially valuable tool for policymakers in public finance and health alike thanks to their capacity to generate revenues and improve health outcomes in OECD. This chapter shows revenues from health taxes (exclusively those levied through excises) on alcohol and tobacco products as well as SSBs across the OECD between 2000 and 2022 based on data provided by OECD countries for Revenue Statistics OECD 2024

The chapter provides data on revenues from health excise taxes in OECD countries that is unique in terms of its granularity, comprehensiveness and comparability. Detailed and comparable data on revenues from health taxes is important to understand their impact and effectiveness as well as to enhance the design of these instruments. However, this data needs to be interpreted with caution due to the range and complexity of factors that may explain changes and trends in health tax revenues, as well as differences in the level of revenues from health taxes across countries.

As shown in this chapter, revenues from health excise taxes equate to a relatively small proportion of GDP and account for a relatively small share of total tax revenues. On average across OECD countries, health excise taxes amounted to 0.74% of GDP and generated 2.24% of total tax revenues in 2022. Taxes on tobacco generated the largest amount of revenues out of the three categories on average across the OECD, followed by taxes on alcohol. Excise taxes on SSBs remain relatively small.

Revenues from tobacco and alcohol have declined as a share of GDP in almost all OECD countries since 2000, resulting in a steady overall decline in total revenues from health taxes as a share of GDP on average. Over this period, consumption of alcohol and tobacco has declined on average across OECD countries while (nominal) excise rates have trended upwards. Revenues from taxes on SSBs have remained at a very similar level across this timeframe, although this data does not capture all the SSBs implemented in OECD countries due to reporting issues.

Revenue Statistics will continue to work with OECD countries (and some non-OECD countries) to enhance the granularity and comprehensiveness of data on revenues from health taxes as a basis for enhancements in policy making and cross-country analysis. In time, data on excise revenues could be complemented by information on revenues from customs duties on alcohol, tobacco and SSBs, which also generate revenues for the government and influence consumption.

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Lauer, J. et al. (eds.) (2022), Health taxes : policy and practice, World Scientific Publishing Europe Ltd, Singapore, https://doi.org/10.1142/q0365

Lauer, J. et al. (eds.) (2022), Supply-side responses to health taxes, World Scientific Publishing Europe Ltd.

New Zealand Customs Service (2024), https://www.customs.govt.nz/about-us/news/importantnotices/new-excise-duty-and-levy-rates-for-alcohol-from-1-july-2024/.

OECD (2024), Tobacco Taxation in Latin America and the Caribbean: A Call for Tobacco Tax Reform, OECD Publishing, Paris, https://doi.org/10.1787/080cd662-en.

OECD (2023), Health at a Glance 2023: OECD Indicators, OECD Publishing, Paris, https://doi.org/10.1787/7a7afb35-en.

OECD (2022), Consumption Tax Trends 2022: VAT/GST and Excise, Core Design Features and Trends, OECD Publishing, Paris, https://doi.org/10.1787/6525a942-en

OECD (2019), Revenue Statistics 2019, OECD Publishing, Paris, https://doi.org/10.1787/0bbc27da-en

World Health Organization (2024), https://www.who.int/data/gho/data/themes/healthtaxes#:~:text=Health%20taxes%20are%20excise%20taxes,%2Dsweetened%20beverages% 20(SSBs).

World Health Organization (2023), Global report on the use of sugar-sweetened beverage taxes, 2023, Geneva: World Health Organization.

Annex 2.A. Additional information on health tax data

Annex Table 2.A.1. Overview on health tax reporting OECD countries in 2000, 2010 and 2022

Notes: This table provides an overview on the reporting of health excise tax revenue by country for the years 2000, 2010 and 2022. All data is reported in OECD Revenue Statistics (category 5121), except for data for Türkiye prior to 2018, which is sourced from the national government’s “General Budget” annual publications starting in 2009 that provide identical data as in Revenue Statistics for the overlapping years. The following OECD countries currently have a SSB excise tax in place but do not report a separate SSB excise tax revenue category in OECD Revenue Statistics (and are therefore not included in this Special Feature): Canada (sub- national), Hungary, Poland, Spain (sub-national), United States of America (sub-national).

1 A special case applies to Chile, as it levies an indirect tax on alcohol and SSBs, respectively, classified as “Tasas especiales del impuesto al valor agregado” (or “VAT special rates”) under official tax revenue reports; hence, revenue raised from this tax are not classified under the “5121-Excise” category in OECD Revenue Statistics and thus not included in the displayed figures.

2 Korea levies a “special consumption tax on tobacco excise” but due to a lack of disaggregation, it is not included in the figures displayed.

3 Norway reports SSB excise tax revenue OECD Revenue Statistics until 2021 as the tax was repealed in that year.

Source: OECD Revenue Statistics 2024

Annex Figure 2.A.1. Level of health, tobacco, alcohol and SSB excise tax revenue by OECD country, 2022

Percentage of GDP

Note: Health excise tax revenue (Panel A) is the sum of reported tax revenue collected from excise taxes levied on tobacco (Panel B), alcohol (Panel C) and SSBs (Panel D). The estimates of health excise tax revenues are based on data reported by the countries. The OECD average for health excise tax revenues is calculated based on 38 countries for total health excise tax revenue, 38 countries for tobacco, 37 countries for alcohol and 1 2 countries for SSB (Annex Table 2.A.1. provides a list of reporting countries). Health excise tax revenue data are sourced from OECD Revenue Statistics (category 5121) for all OECD countries in 2022.

Source: Authors’ calculations based on OECD Revenue Statistics 2024

StatLink 2 https://stat.link/t6oe0y

Annex Figure 2.A.2. Share of health, tobacco, alcohol and SSB excise tax revenue by OECD country, 2022

Percentage of total tax revenues

Note: Health excise tax revenue (Panel A) is the sum of reported tax revenue collected from excise taxes levied on tobacco (Panel B), alcohol (Panel C) and SSBs (Panel D). The estimates of health excise tax revenues are based on data reported by the countries. The OECD average for health excise tax revenues is calculated based on 38 countries for total health excise tax revenue, 38 countries for tobacco, 37 countries for alcohol and 12 countries for SSBs (Annex Table 2.A.1. provides a list of reporting countries). Health excise tax revenue data are sourced from OECD Revenue Statistics (category 5121) for all OECD countries in 2022.

Source: Authors’ calculations based on OECD Revenue Statistics 2024

StatLink 2 https://stat.link/216s8n

Notes

1 The definition could reasonably be extended to include (for example) products that damage the environment, given the impact of pollution on people’s health.

2 For the purposes of this study, the definition of SSBs follows that of the World Health Organisation: ‘[A]ll types of beverages containing free sugars, and these include carbonated or non-carbonated beverages, fruit/vegetable juices and drinks, liquid and powder concentrates, flavoured water, energy and sports drinks, ready-to-drink tea, ready-to-drink coffee and flavoured milk drinks.’ (World Health Organization, 2023[17]) However, it should be noted that products taxed as SSBs in OECD countries may use artificial sweeteners rather than sugar. For the purposes of this chapter, such products are still counted as SSBs, even though the title is not strictly accurate.

3 In addition to the 12 countries discussed in this chapter, the following countries implement taxes on SSBs but do not report a separate SSB excise tax revenue category to OECD Revenue Statistics and are therefore not included in this Special Feature: Canada (at sub-national level), Hungary, Poland, Spain (sub-national) and United States (sub-national). Norway is one of the countries for which revenues on SSBs are included in the chapter but data is not shown for 2022 as its SSB excise tax was abolished in 2021.

4 Please consult Chapter 3 of (OECD, 2022[3]) for a broader exploration of this topic.

5 According to (Goodchild, Nargis and Tursan d’Espaignet, 2018[15]), the economic costs of smokingattributable diseases was equivalent to 2.2% of GDP on average across high-income countries in 2012.

6 Please consult (Australian Taxation Office, 2024[16]) for additional information on the excise-equivalent customs duties in Australia and (New Zealand Customs Service, 2024[14])for New Zealand.

7 Chile levies an indirect tax on alcohol and SSBs, respectively, which are classified as “Tasas especiales del impuesto al valor agregado” (or “VAT special rates”); revenue raised from this tax are not classified as an excise in Revenue Statistics and thus not included in this chapter.

8 Please refer to (OECD, 2022[3]) and previous editions of the same report for data on excise rates for (inter alia) cigarettes, cigars, rolling tobacco for cigarettes, beer, still wine, sparkling wine and other alcoholic beverages.

3 Tax levels and tax structures, 19652023

Chapter 3 provides an overview of tax levels and tax structures in OECD countries.

In all the following tables, the symbol (..) indicates not available or not applicable. The main series in this chapter cover a selection of years between 1990 and 2023. A complete series is available online. Data for 1955 and 1960 (for nineteen OECD countries) are provided in Part V of the 1998 edition of this Report. The Gross Domestic Product (GDP) figures are based on the 2008 System of National Accounts (SNA) for all OECD countries.

Box 3.1. Treatment of capital transfers

Footnotes to Tables 3.1 to 3.18 refer to the treatment of the capital transfers that some countries make to account for taxes that have been assessed but not collected. The capital transfer has been subtracted directly from the specific taxes to which they relate, except for France, where the capital transfer has been allocated between tax headings in proportion to their tax revenues at the level of government against which these transfers were recorded.

Countries reporting capital transfers include:

• Austria from 2020 to 2022

• Belgium from 1995

• Denmark from 1971

• France from 1992

• Lithuania from 1999

• Luxembourg from 2013

• Poland from 1995

• Slovenia from 1995

• Switzerland from 1990

Table 3.1. Total tax revenue as % of GDP

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Calculated by applying the unweighted average percentage change for 2023 in the 36 countries providing data for that year to the overall average tax to GDP ratio in 2022.

Table 3.2. Total tax revenue in billions of US dollars at market exchange rates

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.3. Tax revenue of main headings as % of GDP, 2022

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

3. The figures in category 5000 include supranational revenues, which are also presented separately under the Supranational heading.

Table 3.4. Tax revenue of main headings as % of total tax revenue, 2022

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

3. The figures in category 5000 include supranational revenues, which are also presented separately under the Supranational heading.

Table 3.5. Tax revenue of main headings as % of GDP, 2023p

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

3. The figures in category 5000 include supranational revenues, which are also presented separately under the Supranational heading.

Table 3.6. Tax revenue of main headings as % of total tax revenue, 2023p

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

3. The figures in category 5000 include supranational revenues, which are also presented separately under the Supranational heading.

Table 3.7. Taxes on income and profits (1000) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.8. Taxes on personal income (1100) as % of GDP and as % of total tax

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.9. Taxes on corporate income (1200) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.10. Social security contributions (2000) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.11. Taxes on payroll and workforce (3000) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.12. Taxes on property (4000) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.13. Taxes on goods and services (5000) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.14. Value added taxes (5111) as % of GDP and as % of total tax revenue

.. Not available

Note: Full time series can be accessed at http://data-explorer.oecd.org/s/nb

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

Table 3.15. Tax revenues of sub-sectors of general government as % of GDP

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Colombia and Spain are not constitutionally federal countries, but both have a highly decentralised political structure, with high autonomy of their territorial entities.

Table 3.16. Main central government taxes as % of total tax revenues of central government, 2022

Note: Excluding social security contributions accruing to social security funds.

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Colombia and Spain are not constitutionally federal countries, but both have a highly decentralised political structure, with high autonomy of their territorial entities.

3. These comprise only social security contributions accruing to central government.

Table 3.17. Main state government taxes as % of total tax revenues of state government, 2022

Türkiye

United Kingdom

Unweighted

.. Not available

1. The capital transfers were subtracted directly from the specific taxes to which they relate.

2. Payments to the European Union are excluded from these comparisons.

3. Colombia and Spain are not constitutionally federal countries, but both have a highly decentralised political structure, with high autonomy of their territorial entities.

Table 3.18. Main local government taxes as % of total tax revenues of local government, 2022

1. The capital transfers were subtracted directly from the specific taxes to which they relate, except for France, where the capital transfers have been allocated between tax headings in proportion to the reported tax revenue.

2. Payments to the European Union are excluded from these comparisons.

3. Colombia and Spain are not constitutionally federal countries, but both have a highly decentralised political structure, with high autonomy of their territorial entities.

Table 3.19. Gross domestic product for tax reporting years at market prices, in billions of national currency

.. Not available

1. GDP is fiscal year. The year Y is calculated as the sum of: Q2(Y) to Q1(Y+1) for Japan; and Q3(Y) to Q2(Y+1) for Australia and New Zealand.

2. The GDP shown for 1990 in Costa Rica is taken from the IMF (World Economic Outlook Database, accessed in October 2024). The GDP for all other years is taken from the OECD National Accounts.

3. The GDP shown for 2023 in Korea is taken from the OECD National Accounts, accessed in October 2024, and is a provisional value. Source: OECD National Accounts, accessed in October 2024.

Table 3.20. Exchange rates used, national currency per US dollar at market exchange rates

.. Not available

Source: OECD Financial indicators data.

4 Country tables, 1990- 2022

Chapter 4 provides a summary of tax revenues by category and by level of government for each OECD country.

Tax revenue and % of GDP by selected tax category and by level of government

In all the following tables, the symbol (..) indicates not available or not applicable. The main series in this chapter cover a selection of years between 1990 and 2022. A complete series is available online. Data for 1955 and 1960 (for nineteen OECD countries) are provided in Part V of the 1998 edition of this Report.

Gross Domestic Product (GDP) figures are based on the 2008 System of National Accounts (SNA) for all OECD countries.

Box 4.1. Treatment of capital transfers

Some tables refer to the treatment of the capital transfers that some countries make to account for taxes that have been assessed but not collected. The capital transfer has been subtracted directly from the specific taxes to which they relate, except for France, where the capital transfer has been allocated between tax headings in proportion to their tax revenues at the level of government against which these transfers were recorded.

Countries reporting capital transfers include:

• Austria from 2020 to 2022

• Belgium from 1995

• Denmark from 1971

• France from 1992

• Lithuania from 1999

• Luxembourg from 2013

• Poland from 1995

• Slovenia from 1995

• Switzerland from 1990

Table 4.1. Australia, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Australian Bureau of Statistics.

Table

4.2. Australia,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Australian Bureau of Statistics.

Table 4.3. Austria, tax revenue and % of GDP by selected tax category

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Austria.

Table 4.4. Austria, tax revenue and % of GDP by level of government and main taxes

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government". More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics Austria.

Table 4.5. Belgium, tax revenue and % of GDP by selected tax category

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Institute for National Accounts; Federal Ministry of Finance.

Table 4.6. Belgium, tax revenue and % of GDP by level of government and main taxes

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government". More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Institute for National Accounts; Federal Ministry of Finance.

Table 4.7. Canada, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Canada.

Table 4.8.

Canada,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics Canada.

Table 4.9. Chile, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Servicio de Impuestos internos (Chile's Tax Service).

Table 4.10. Chile, tax

revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Servicio de Impuestos internos (Chile's Tax Service).

Table 4.11. Colombia, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component .. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Dirección de Impuestos y Aduanas Nacionales de Colombia, Ministerio de Hacienda y Crédito Público y Banco Central de Colombia. (National Tax and Customs Administration, Ministry of Finance and Public Credit and Central Bank of Colombia).

Table 4.12. Colombia, tax

revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Dirección de Impuestos y Aduanas Nacionales de Colombia, Ministerio de Hacienda y Crédito Público y Banco Central de Colombia. (National Tax and Customs Administration, Ministry of Finance and Public Credit and Central Bank of Colombia).

Table 4.13.

Costa Rica,

tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component

Tax expenditure component

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Secretaría Técnica de la Autoridad Presupuestaria, Ministerio de Finanzas y Contraloría General de la República (Technical Secretary of the Budgeting Authority, Ministry of Finance and National General Comptroller).

Table 4.14. Costa Rica,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Secretaría Técnica de la Autoridad Presupuestaria, Ministerio de Finanzas y Contraloría General de la República (Technical Secretary of the Budgeting Authority, Ministry of Finance and National General Comptroller).

Table 4.15.

Czechia,

tax revenue and % of GDP by selected tax category

contributions

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance, Tax Analyses Department.

Table 4.16. Czechia, tax

revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance, Tax Analyses Department.

Table 4.17. Denmark, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

Source: Statistics Denmark.

Table 4.18. Denmark, tax

revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government".

Source: Statistics Denmark.

Table 4.19. Estonia, tax revenue and % of GDP by selected tax category

Non-wastable tax credits against

Tax

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Estonia.

Table

4.20. Estonia,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics Estonia.

Table 4.21. Finland, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component Revenues

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Finland, basing on data from State Treasury, Tax Administration, Finnish Customs, Finnish Transport and Communication Agency, Financial Stability Authority and Financial Supervisory Authority. Supplementary information from unpublished sources.

Table

4.22. Finland,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics Finland, basing on data from State Treasury, Tax Administration, Finnish Customs, Finnish Transport and Communication Agency, Financial Stability Authority and Financial Supervisory Authority. Supplementary information from unpublished sources.

Table 4.23. France, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfer has been allocated between tax headings in proportion to the reported tax revenue. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

Source: National accounts for France, Insee.

Table

4.24. France,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfer has been allocated between tax headings in proportion to the reported tax revenue. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government".

Source: National accounts for France, Insee.

Table 4.25. Germany, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Finanzbericht, Bonn; Tax Statistics. Unpublished estimates by the Ministry of Finance.

Table 4.26. Germany,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Finanzbericht, Bonn; Tax Statistics. Unpublished estimates by the Ministry of Finance.

Table 4.27. Greece, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component

Revenues collected on behalf of the EU

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance, General Accounting Office, Directorate of General Government Budget in collaboration with the National Statistical Authority (ELSTAT).

Table 4.28. Greece, tax

revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance, General Accounting Office, Directorate of General Government Budget in collaboration with the National Statistical Authority (ELSTAT).

Table 4.29. Hungary, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against

SRF contributions .. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table 4.30. Hungary, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table 4.31. Iceland, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Iceland.

Table

4.32. Iceland,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Iceland.

Table 4.33. Ireland, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Annual Report of the Revenue Commissioners, Financial Accounts and National Income and Expenditure Accounts.

Table 4.34. Ireland, tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Annual Report of the Revenue Commissioners, Financial Accounts and National Income and Expenditure Accounts.

Table 4.35. Israel, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Israel Central Bureau of Statistics and Israel Ministry of Finance.

Table

4.36. Israel,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Israel Central Bureau of Statistics and Israel Ministry of Finance.

Table 4.37. Italy, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministero dell’economia e delle finanze; Istituto nazionale di statistica.

Table

4.38.

Italy, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministero dell’economia e delle finanze; Istituto nazionale di statistica.

Table 4.39. Japan, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component .. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Tax Bureau, Ministry of Finance.

Table 4.40. Japan, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Tax Bureau, Ministry of Finance.

Table 4.41. Korea,

tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component

Tax expenditure component

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance and Economy, Ministry of Home Affairs.

Table 4.42. Korea, tax revenue and % of GDP by level

of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance and Economy, Ministry of Home Affairs.

Table 4.43. Latvia, tax revenue and % of GDP by selected tax category

Non-wastable tax credits against

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance.

Table

4.44. Latvia,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance.

Table 4.45. Lithuania, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

Source: Ministry of Finance.

Table

4.46. Lithuania,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government".

Source: Ministry of Finance.

Table 4.47. Luxembourg, tax revenue and % of GDP by selected tax category

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: General account of the State.

Table 4.48. Luxembourg, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government". More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: General account of the State.

Table 4.49. Mexico, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table 4.50. Mexico, tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table 4.51. Netherlands, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component

Revenues

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Social security contributions and local taxes: Central Bureau of Statistics. Other taxes: Ministry of Finance.

Table

4.52. Netherlands,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Social security contributions and local taxes: Central Bureau of Statistics. Other taxes: Ministry of Finance.

Table 4.53. New Zealand, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics New Zealand.

Table 4.54. New Zealand, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics New Zealand.

Table 4.55. Norway, tax revenue and % of GDP by selected tax category

Revenues collected on behalf of the EU

Revenues collected on behalf of the EU, total Customs duties

SRF contributions

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistics Norway; National Accounts.

Table 4.56. Norway, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistics Norway; National Accounts.

Table 4.57. Poland, tax revenue and % of GDP by selected tax category

Non-wastable tax credits against

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table

4.58.

Poland, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government". More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance, Economic Department.

Table 4.59. Portugal, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component

Revenues collected on behalf of the EU Revenues

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Instituto Nacional de Estatística.

Table 4.60.

Portugal,

tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Instituto Nacional de Estatística.

Table 4.61. Slovak Republic, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Ministry of Finance.

Table

4.62. Slovak Republic,

tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Ministry of Finance.

Table 4.63. Slovenia, tax revenue and % of GDP by selected tax category

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Statistical Office of the Republic of Slovenia.

Table 4.64. Slovenia, tax

revenue and % of GDP by level of government and main taxes

.. Not available

Note: The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government". More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Statistical Office of the Republic of Slovenia.

Table 4.65. Spain, tax revenue and % of GDP by selected tax category

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Information from the Ministry of Finance for taxes and from Social Security System for social security contributions up to 1994. Since 1995 (accrual basis), national account data (IGAE-Ministry of Finance).

Table 4.66. Spain, tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Information from the Ministry of Finance for taxes and from Social Security System for social security contributions up to 1994. Since 1995 (accrual basis), national account data (IGAE-Ministry of Finance).

Table 4.67. Sweden, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax

SRF contributions .. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: National Financial Management Authority, Stockholm.

Table 4.68. Sweden, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: National Financial Management Authority, Stockholm.

Table 4.69. Switzerland, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component

Tax expenditure component

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 5 "Detailed country tables".

Source: Financial Statistics, Federal Finance Administration.

Table 4.70. Switzerland, tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

The total tax revenue has been reduced by the amount of any capital transfer that represents uncollected taxes. The capital transfers were subtracted directly from the specific taxes to which they relate. Therefore, the tax revenue amounts are different to those reported in the detailed country data available in Chapter 6 "Tax revenues by sub-sectors of general government".

Source: Financial Statistics, Federal Finance Administration.

Table 4.71. Türkiye, tax revenue and % of GDP by selected tax category

Non-wastable tax credits

Non-wastable tax credits against 1000 Transfer component Tax expenditure component

.. Not available

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Bulletin of national accounts and the Budget revenue Bulletin.

Table 4.72. Türkiye, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Bulletin of national accounts and the Budget revenue Bulletin.

Table 4.73. United Kingdom, tax revenue and % of GDP by selected tax category

.. Not available

Note: Please note that the non-wastable tax credit data for the United Kingdom is on a cash basis and includes estimates in some years. Please see the footnotes in the table for the United Kingdom in Chapter 5 for more information.

Supranational taxes reported by the United Kingdom are reported until 2020 in Revenue Statistics. From 2021, at the end of the Brexit transition period, this came to an end and taxes subsequently introduced by the United Kingdom are reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: National Income and Expenditure; Central Statistical Office; Annual reports of His Majesty's Revenue and Customs.

Table 4.74. United Kingdom, tax revenue and % of GDP by level of government and main taxes

.. Not available

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: National Income and Expenditure; Central Statistical Office; Annual reports of His Majesty's Revenue and Customs.

Table 4.75. United States, tax revenue and % of GDP by selected tax category

Note: More detailed country data and country notes are available in Chapter 5 "Detailed country tables". Full time series can be accessed at http://dataexplorer.oecd.org/s/nb

Source: Federal estimates are derived from the US Budget, the Final Monthly Treasury Statement and the Annual Report of the US Treasury Department. The State and Local estimates are derived from Government Finances, published by the Bureau of the Census.

Table 4.76. United States, tax revenue and % of GDP by level of government and main taxes

Note: More detailed country data and country notes are available in Chapter 6 "Tax revenues by sub-sectors of general government". Full time series can be accessed at http://data-explorer.oecd.org/s/nb

Source: Federal estimates are derived from the US Budget, the Final Monthly Treasury Statement and the Annual Report of the US Treasury Department. The State and Local estimates are derived from Government Finances, published by the Bureau of the Census.

Memorandum tables

Table 4.77 shows different sources for financing social benefits, beyond compulsory social security contributions reported in section 4.1. In addition, this table shows also data on other taxes, on voluntary contributions to government and on compulsory contributions to private sector.

Table 4.78 shows social security contributions and payroll taxes paid by government. During the revision of the Interpretative Guide in 1984, the question arose of how to treat taxes paid by government. The two most prominent examples of such taxes are social security contributions and payroll taxes paid by government in respect of its employees. After a long discussion it was decided that the data shown in this publication should continue to include taxes paid by government (see §7 of the Interpretative Guide in Annex A).

Whilst it was recognised that for certain purposes (e.g. to show the cash flow to the government sector from the private sector) it would be appropriate to eliminate taxes paid by one sector of government to another or tax payments between different units of the same sector of government, the view was taken that to record tax flows in the context of the economy as a whole required that taxes paid by government should be included in the data. This treatment ensures that the different resource flows of an economy, including the calculation of the output of government, are measured consistently in after-tax units. Nevertheless, it was decided that data on identifiable taxes paid by government should be separately identified in a memorandum item and this is the purpose of the country tables which follow.

The data that are reproduced in the following tables refer to actual compulsory payments made by general government in respect of their employees. Fictive, voluntary and imputed contributions are excluded from these data. The definitions of social security contributions, payroll taxes and general government are those set out in §40 to §46, §47 and §3 to §4 of the Interpretative Guide. Information on the other taxes paid by government (namely property taxes and consumption taxes) is not available in most countries, although it is believed that in all countries taxes based upon payroll are the most important taxes paid by government. In many cases, the data are estimates and are not always constructed on a basis consistent with that used in the main tables.

Table 4.77. Financing of social security benefits As % of GDP

.. Not available

Table 4.78. Social security contributions and payroll taxes paid by government, totals As % of GDP

.. Not available

1. For Australia, the total differs from the sum of the four levels of government. The difference is due to a multi-jurisdictional (University) sector specific to this country. This sector contains units where jurisdiction is shared between two or more governments, or where classification of a unit to a jurisdiction is otherwise unclear. The main type of units currently falling into this category is public universities.

country tables, 1965-2022

Chapter 5 provides detailed country information on tax revenues for each OECD country.

In all the following tables, the symbol (..) indicates not available or not applicable. The main series in this chapter cover a selection of years between 1965 and 2022. A complete series is available online. Data for 1955 and 1960 (for nineteen OECD countries) are provided in Part V of the 1998 edition of this Report.

Table 5.1. Australia: Details of tax revenue, 1965-2022

.. Not available

Note: Data are on a fiscal year basis beginning 1st July.

From 1998 taxes are recorded on an accrual basis; prior to that they were on a cash basis.

Direct taxes paid by public trading enterprises are excluded from receipts.

The figures for total tax revenue do not match the published totals in Taxation Revenue Australia. The latter is based on an accrual IMF GFS methodology and there are some differences between that and the OECD equivalent.

Heading 5213 includes radio and television licenses fees, though these are usually not regarded as a tax revenue in the OECD list.

Headings for non-wastable tax credits 1110 and 1210 include the private health insurance tax offset, family benefit, baby bonus tax offsets (paid during the 2003-04 budget year), film tax offset, and research and development tax offsets. The estimation of non-wastable credits into the expenditure and transfer components is in accordance with the OECD guidelines on the treatment and the data for this memorandum item has been provided by the Australian Taxation Office.

Source: Australian Bureau of Statistics.

Table 5.2. Austria: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: Year ending 31st December. From 1995 data are on accrual basis.

The pre-1995 figures are not in all cases comparable with those from the following years (due to the switch to the new

implemented only from 1995 onwards).

Source: Statistics Austria.

Table 5.3. Belgium: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: Year ending 31st December. From 1970, data are on accrual basis.

Source: Institute for National Accounts; Federal Ministry of Finance.

Table 5.4. Canada: Details of tax revenue, 1965-2022

Note: From 2001, all data are for the year ending 31st December. For 2000 and earlier years, data for the Federal, Provincial and Territorial governments and Social security funds are on a fiscal year basis commencing 1st April. Data for local government are on a fiscal year basis commencing 1st January. From 1999 data are on accrual basis.

There are some minor differences between the data for the years 1965 to 1978 and those for subsequent years. These mostly relate to the inclusion of fines and penalities or late payment of taxes and deductions for the child tax credits in the data for the years 1979 to 1983.

Heading 1210 - Taxes federal government: Federal corporate taxes include capital taxes.

Heading 2000: Includes receipts from the Canadian Pension Plan, Quebec Pension Plan, Unemployment Insurance Fund and Provincial Health Insurance. Premiums, Medicare Premiums and Social Insurance levies but excludes that part of the taxes on income and sales taxes earmarked for old age security. The practice of earmarking these taxes was discontinued in June 1975.

Heading 4400: From 2002 onward includes land transfer taxes of the provincial, territorial and local governments. Prior to 2002 land transfer taxes of the local government were included in line 6000 and those provincial and territorial governments were included in line 4520.

Heading 5121: The large increase in this heading between 1980 and 1981 is due to the introduction of a 'special petroleum compensation charge', a 'Canadian ownership special charge' and to an increase in the natural gas tax of C$ 2399 millions.

Heading 5122: From 1988, profits on fiscal monopolies include lottery profits.

Heading 5128: From 1988, other taxes of Federal Government does not include the annual fees for managing the spectrum (airwaves) allocation to the cellular industry.

Heading 5211: Some Québec motor vehicle licence administrative fees are included in sales of goods and services for the period 1988-89 to 1997-98. From 1998-99 onward, these fees are included under other taxes - motor vehicle licences.

Source: Statistics Canada.

Table 5.5. Chile: Details of tax revenue, 1965-2022

Million CLP

Total tax revenue on accrual basis

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

National Accounts: Taxes and all social contributions

.. Not available

Note: Year ending 31st December. The data are on a cash basis.

Source: Servicio de Impuestos internos (Chile's Tax Service).

Table 5.6. Colombia: Details of tax revenue, 1965-2022

Million COP

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

.. Not available

Note: Year ending 31st December.

Data on an cash basis.

Includes the reported consolidated revenues of the territorial entities (departments and municipalities).

Heading 2000: Before 2013, social security contributions did not include all the contributions entering FOSYGA (Solidarity and Guarantee Fund). Only the portion of the contributions used to finance the subsidised regime (up to 1.5 pp of the 12.5% of the monthly wage paid by employers and employees as an obligatory health contribution) was included. The part of the contributions entering FOSYGA to finance the contributory regime was classified in the social security sector as “other incomes”

From 2013 onwards, all of the health contributions entering FOSYGA are classified as social security contributions. The portion of the contributions not entering FOSYGA that is both collected and spent by the health insurers – EPS - is not part of the fiscal accounts.

Headings 1100 and 1200: The data for the preliminary year are estimates.

Source: Dirección de Impuestos y Aduanas Nacionales de Colombia, Ministerio de Hacienda y Crédito Público y Banco Central de Colombia. (National Tax and Customs Administration, Ministry of Finance and Public Credit and Central Bank of Colombia).

Table 5.7. Costa Rica: Details of tax revenue, 1965-2022

tax basis of self/non-employed SSC

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

.. Not available

Note: Note: Year ending 31st December. Data on a cash basis.

Heading 2000: The data include social security contributions paid by the governments for their employees as well as the contributions for special regimes (teachers and magistrates). In ECLAC data, social security contributions also include INA (National Institute of Apprenticeship), IMAS (Joint Social Aid Institute) and FODESAF (Social Development and Family Allowances Fund).

Heading 3000: In Costa Rica and for ECLAC, payments from decentralised institutions are classified under heading 2000.

Heading 5212: In ECLAC data, tax on ownership of vehicles, aircraft and boats is classified in category 4000. In ECLAC data, the tax on the transfer of used vehicles Law No. 7088 of 30/11/87 is classified as a property tax.

Source: Secretaría Técnica de la Autoridad Presupuestaria, Ministerio de Finanzas y Contraloría General de la República. (Technical Secretary of the Budgeting Authority, Ministry of Finance and National General Comptroller).

Table 5.8. Czechia: Details of tax revenue, 1965-2022

Million CZK

.. Not available

Note: Year ending 31st December. From 1995 data are on accrual basis.

Source: Ministry of Finance, Tax Analyses Department.

Table 5.9. Denmark: Details of tax revenue, 1965-2022

Million DKK

credits against 1210

basis

Not available

Note: Year ending 31st December. The figures are on an accrual basis. Heading 2300 includes a small amount of voluntary contributions which cannot be isolated.

Source: Statistics Denmark.

Table 5.10. Estonia: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. Data on an accrual basis.

Source: Statistics Estonia.

Table 5.11. Finland: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December.

From 1988 data are on accrual basis.

The comparability of the time series to earlier years is slightly lower.

Headings 2120 and 2320: The breakdown of contributions paid by employees and self-employed or non-employed is estimated, except for the healthcare fee of students in higher education included also into 2320 (in effect from 2021).

Headings 4110 and 4120: The breakdown of contributions paid by households and others is estimated.

Heading 4400: Negative values in Stamp duties are due to repayments during transition time from Stamp duties to Transfer tax.

Heading 5121: Negative items in Price difference compensations were due to subsidies under the price compensation scheme, which could be offset against any positive tax liability.

Heading 5126: Negative values are due to repayments temporary bank tax.

Heading 5212: Prior to 1990, a part of the tax was paid by households.

Source: Statistics Finland, basing on data from State Treasury, Tax Administration, Finnish Customs, Finnish Transport and Communication Agency, Financial Stability Authority and Financial Supervisory Authority. Supplementary information from unpublished sources.

Table 5.12. France: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: Calendar year ending on December 31st. From 1992, the data are on an accrual basis. From 1970, figures were calculated according to the new System of National Accounts and are not, therefore, comparable to those of the previous years. The section 2000 includes certain voluntary contributions.

Source: National accounts for France, Insee.

Table 5.13. Germany: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: Year ending 31st December.

From 2002 data are on accrual basis.

The tax revenues for Germany refer to the old Länder until 1990 and to all Germany beginning in 1991.

Heading 1000: In the years up to 2000, the revenues shown take into account the whole amount of non-wastable tax credits including that part paid out by the tax authorities which should, under the OECD criteria, be treated as expenditure. From 2001, the data necessary to make the adjustment have become available and the revenue figures comply with the OECD criteria from that year.

Heading for non-wastable tax credits against 1110 comprise child tax credits (paid out of wage tax revenue), tax credits for owner occupied housing (paid out of assessed income tax revenue), retirement allowance (“Riester allowance”, paid out of wage tax revenue), investment tax credits for unincorporated businesses (for investment in former East Germany; paid out of assessed income tax revenue), research allowance for unincorporated businesses (paid out of assessed income tax revenue) and employee savings allowance.

Heading for non-wastable tax credits against 1210 are investment tax credits for incorporated businesses (for investment in former East Germany; paid out of corporate income tax revenue) and research allowance for incorporated businesses (paid out of corporate income tax revenue).

Source: Finanzbericht, Bonn; Tax Statistics. Unpublished estimates by the Ministry of Finance.

Table 5.14. Greece: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. From 1998 data are on accrual basis.

Source: Ministry of Finance, General accounting Office, Directorate of General Government Budget in collaboration with the National Statistical Authority (ELSTAT).

Table 5.15. Hungary: Details of tax revenue, 1965-2022

Million HUF

.. Not available

Note: Year ending 31st December.

From 2002 onwards, data are on accrual basis, except for the preliminary year, which is on a cash basis.

Heading 5121: the aggregate figure for excise tax revenues is on a cash basis. Revenue from specific excises is

basis.

Tax base for "Environment petrol tax" is broader than petrol only.

Source: Ministry of Finance, Economic Department.

Table 5.16. Iceland: Details of tax revenue, 1965-2022

ISK

.. Not available

Note: Year ending 31st December. From 1998 data are on accrual basis.

Source: Statistics Iceland.

Table 5.17. Ireland: Details of tax revenue, 1965-2022

.. Not available

Note: The personal income tax data shown for the country table for Ireland is different to the ESA2010 presentation as the expenditure component of the payable tax credits are excluded in accordance with the OECD Interpretative Guide.

The data for years 1965 to 1973 are on fiscal year basis (commencing on 1st April) and are therefore not strictly comparable with the data for later years, which are on a calendar year basis.

From 1998, data are on accrual basis.

Heading 1200: Capital gains taxes paid by corporations are included in heading 1210.

Heading 2100: Includes contributions by self-employed and certain voluntary contributions.

Heading 2200: Since 1976 income tax paid by corporations and corporation profits tax have been replaced by corporation tax.

Heading 5111: Includes arrears of the wholesale and turnover taxes.

Tax receipts in 1988 were inflated by the success of the new arrangements for assessment and collection of tax. These arrangements included an amnesty for tax arrears paid by 30th September. This amnesty waived penalties and interest charge tax. It resulted in payments of 631 million euros spread across the main tax headings.

Source: Annual Report of the Revenue Commissioners, Financial Accounts and National Income and Expenditure Accounts.

Table 5.18. Israel: Details of tax revenue, 1965-2022

ILS

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

.. Not available

Note: Year ending 31st December. Data are on a cash basis.

Source: Israel Central Bureau of Statistics and Israel Ministry of Finance.

Table 5.19. Italy: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: The tax year ends in December 31th.

As from 2000, revenues data are computed on accrual basis.

As from 1997, revenues data are based on data provided to the European Union as for the Treaty of Maastricht excessive deficit procedure.

Section 6000: Regional Tax on Productive Activities (IRAP); it is a tax on the value of production therefore its taxable base is different from other groups tax bases.

Regarding the section “Taxes excluded National Accounts” the item “Others” includes: tax on the public areas utilization and tax on the collection and disposal of waste water.

Source: Ministero dell’economia e delle finanze; Istituto nazionale di statistica.

Table 5.20. Japan: Details of tax revenue, 1965-2022 Billion JPY

National Accounts: Taxes and all social contributions

.. Not available

Note: Data are on a fiscal year basis beginning 1st April.

From 1990, data are on accrual basis.

The figures for different groups of taxes are reported on different reporting bases, namely: Social security contributions (heading 2000) : in principle accrual basis, Central government taxes : accrual basis (revenues accrued during the fiscal year plus cash receipts collected before the end of May (the end of April until 1977), Local government taxes : accrual basis (due to be paid during the fiscal year and cash receipts collected before the end of May).

The Japanese authorities take the view that the Enterprise tax (classified in 1100 and 1200) and the Mineral product tax (classified in 5121) should be classified in heading 6000 since under articles 72 and 519 of the Local Tax Law these taxes are regarded as levies on the business or mining activity itself.

Heading 2000 includes some unidentifiable voluntary contributions.

Heading 2300: Includes contributions to the National pension, National Health Insurance and the Farmer's pension fund. Contributions to the Farmer's pension fund are not available for the years before 1999.

Heading 4100: Municipal property tax, includes Prefectural property tax from 1990 to 1994 because data is not available to provide a breakdown.

Heading 5121: Municipal tobacco tax, includes Prefectural tobacco tax from 1990 to 1994 because data is not available to provide a breakdown.

Heading 5121: In sub-item Petroleum and coal tax, the data before 2003 refer to petroleum tax.

Source: Tax Bureau, Ministry of Finance.

Table 5.21. Korea: Details of tax revenue, 1965-2022

Billion KRW

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

National Accounts: Taxes and all social contributions

.. Not available

Note: Year ending 31st December.

Data are on cash basis.

Heading 2000: From 1997 the contributions to the three funds (civil servant pension fund, private school teachers pension fund and medical insurance fund) are classified as security social contributions. The reasons for the change are that the contributions either became mandatory or the fund started to be managed by public authorities in that year, thereby meeting the OECD definition of social security contributions.

Heading 2200: From 2007, this includes long-term care insurance.

Source: Ministry of Finance and Economy, Ministry of Home Affairs.

Table 5.22. Latvia: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. Data on accrual basis.

Source: Ministry of Finance.

Table 5.23. Lithuania: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. Data on an accrual basis.

Source: Ministry of Finance.

Table 5.24. Luxembourg: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: The civil year ends December 31st.

Data are on an accrual basis.

Under the heading 2000, the difference between the total social security contributions and those collected by the social security parastatals corresponds to the levy for realignment of pensions operated on the remuneration and pensions of employees and former agents of P&T and BCEE; one of these establishments belonging to the "non-corporate and quasi-corporate sector" and the other to the "credit institutions sector".

Compulsory social security contributions paid by EU civil servants include imputed social security contributions.

Source: General account of the State.

Table 5.25. Mexico: Details of tax revenue, 1965-2022

Total tax revenue on accrual basis

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

National Accounts: Taxes and all social contributions

.. Not available

Note: Year ending 31st December. Data are on cash basis.

Source: Ministry of Finance, Economic Department.

Table 5.26. Netherlands: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December.

From 1999 data are on accrual basis.

Heading 2000: From 1998 the figures include some violuntary contributions and the breakdown between premiums paid by employees (2100) and by selfemployed / non-employed has been estimated. This is also the case for the breakdown between premiums paid on a payroll or on an income tax basis for those years where both apply.

Heading 4100: From 1992, there was a structural break in the data for the 'municipal immovable property tax'. The tax ceased to be collected by the central government at that time and the figures are presented on a different type of statistical registration (no longer cash basis).

Heading 5110: Includes 358 millions of euros (1969) and 186 millions of euros (1970) in respect of deduction of turnover tax on stocks existing at 1st January 1969.

Heading 5213: Small amounts (less than 2.3 millions euros) of hunting and fishing licence receipts which should be classified here have been omitted.

Source: Social security contributions and local taxes: Central Bureau of Statistics.

Other taxes: Ministry of Finance.

Table 5.27. New Zealand: Details of tax revenue, 1965-2022

Note: For the years before 1989 data are on a fiscal year basis ending 31st March. The figures provided for 1989 and onwards relate to the financial year ending 30th June of the following year.

From 1993, data are on accrual basis.

Heading 1000: Tax credits to exporters under the export incentives schemes are non-wastable, but that part of the excess of taxliability paid out to taxpayers is not identifiable.

Heading 1100: The figures up to 1969 include revenues collected by a social security income tax. The base of this tax was the same as the ordinary income tax base and the two have now been incorporated into a single income tax.

Heading 5121: From October 1986 incorporates that portion of the selective impost on wine, spirits, tobacco and motor vehicles which was formerly collected and reported as sales tax. The revenue collected on those imported goods which are subject to the equivalent of the domestic excise has been classified as excise duty. In this respect, there is a discontinuity between the excises recorded before and after October 1986.

Heading 5210: The other local authority licence fees include some small items which could be regarded as non-tax revenues.

Heading for non-wastable tax credits 1110 comprises four Family assistance tax credits. The total in item 1100 is net of the tax expenditure component but not net of the transfer component.

Source: Statistics New Zealand.

Table 5.28. Norway: Details of tax revenue, 1965-2022

Million NOK

Note: Year ending 31st December. From 2000, data are on accrual basis.

Heading 5211: Up to 1971 this item contains motor vehicle licences paid by both households and enterprises.

Heading 5121: From 2005, taxes on alcoholic beverages include both 'taxes on spirits and wines' and 'excise on beer'.

Heading 5125: From 1998, revenue from taxes on investments goods is included in item 5121 "Others".

Source: Statistics Norway; National Accounts.

Table 5.29. Poland: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. From 2002, data are on accrual basis.

Source: Ministry of Finance, Economic Department.

Table 5.30. Portugal: Details of tax revenue, 1965-2022

.. Not available

Note: Fiscal year ending 31 December. From 1995, data are on accrual basis. Source: Instituto Nacional de Estatística.

Table 5.31. Slovak Republic: Details of tax revenue, 1965-2022

Million EUR

.. Not available

Note: Year ending 31st December. Data are on accrual basis.

Source: Ministry of Finance.

Table 5.32. Slovenia: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December. Data are on accrual basis.

Source: Statistical Office of the Republic of Slovenia.

Table 5.33. Spain: Details of tax revenue, 1965-2022

.. Not available

Note: Year ending 31st December.

From 1995, data are on accrual basis.

Since 1995, the data are consistent with those transmitted to Eurostat in the framework of Government Finance Statistics (ESA).

From 1981 the figures take into account the classification procedures set out in the OECD Interpretative Guide. Consequently, they are not completely comparable with the figures for earlier years though the amounts involved are quite small.

Heading 2300: Contributions paid by self-employed were shown under heading 2100 until 1982.

Source: Information from the Ministry of Finance for taxes and from Social Security System for social security contributions up to 1994. Since 1995 (accrual basis), national account data (IGAE-Ministry of Finance)

Table 5.34. Sweden: Details of tax revenue, 1965-2022

Million

SEK

.. Not available

Note: Year ending 31st December. From 2000 data are on accrual basis. Figures prior to 1970 are not strictly comparable with those of later years, though the amounts involved are insignificant. Heading 1000: Receipts are on accrual and not on a cash basis for all years.

Source: National Financial Management Authority, Stockholm.

Table 5.35. Switzerland: Details of tax revenue, 1965-2022

.. Not available

Note: Calendar year ending on 31 December.

The data is on an accrual basis.

The pre-1970 figures are not strictly comparable with those from the following years which were revised. "Parish taxes" are not reported in these statistics from 1985 onward.

In section 1100: payments made in consideration for exemption from military service could be classed under nontax receipts.

Section 2000 (Social security contributions) has been revised from 1985 onward to take account of the sectoring of government units adopted when switching to the ESA 95 system of accounts (currently ESA 2010). Consequently, health insurance contributions and those to the Swiss National Accident Insurance Fund are now excluded from section 2000.

Source: Financial Statistics, Federal Finance Administration.

Table 5.36. Türkiye: Details of tax revenue, 1965-2022

Total tax revenue on accrual basis

Additional taxes included in National Accounts

Taxes excluded from National Accounts

Difference in treatment of tax credits

Capital transfer for uncollected revenue

Voluntary social security contributions

Miscellaneous differences

National Accounts: Taxes and actual social contributions

Imputed social contributions

National Accounts: Taxes and all social contributions

.. Not available

Note: From 1982 the data are based on the fiscal year ending 31st December. Before that the data are on a fiscal year basis beginning 1st March.

Revenue is reported on a cash basis except for social security contributions which are reported on an assessment basis.

The figures under the local tax collections include taxes under 'Municipalities Revenues Law' and Property tax. They also include transfers to the local authorities from central budget tax revenues under the revenue sharing system.

Heading 2000: Before 2003, contributions to some private social security schemes are included in this heading.

Source: Bulletin of national accounts and the Budget revenue Bulletin.

Table 5.37. United Kingdom: Details of tax revenue, 1965-2022

Million GBP

.. Not available

Note: Year ending 31st December. From 1990 data are on accrual basis.

Supranational taxes reported by the United Kingdom continue to be reported for 2020 in Revenue Statistics as in previous years. From 2021, at the end of the Brexit transition period, this will come to an end and taxes subsequently introduced by the United Kingdom will be reflected in the appropriate tax category at the national or subnational levels of government, as appropriate.

Heading 1210: The corporate tax figures include company income tax from 1990 onwards.

Heading 2000: Includes some voluntary contributions which cannot be separately identified.

Heading 5113: Following the SNA 2008 classification, the digital services tax is classified by the ONS as a Tax on imports excluding VAT and import duties (D.2122). However, it is classified in Revenue Statistics in the category Taxes on turnover and other general taxes on goods and services (5113) for consistency across OECD countries reporting the same type of tax.

Heading 6200: The community charge replaced domestic rates in Scotland in April 1989 and was extended to England and Wales in April 1990. This tax has been classified in heading 6200 as it is a lump-sum tax levied on each adult in a household (domestic rates are classified in heading 4100). Headings for non-wastable tax credits 1110 and 1210 are consistent with the guidelines, and the figures in the data are treated accordingly. The following method is adopted separately for Working Families 'Tax Credit and Disabled Persons Tax Credit' paid from 1999 to 2003. For each calendar year, a random sample of awards over-lapping the quarter is taken. Each recipient family's income tax liability for the fiscal year within which the quarter falls is calculated, based on the earned income reported for the award (uprated to the middle of the overlap period). And the result multiplied by the number of days in the overlap period divided by 365. The tax expenditure component is defined as the minimum of this amount and the total amount of award paid in the overlap period. The total amount of award paid and the tax expenditure component are each summed over the sample cases, and the ratio is taken as the tax expenditure ration for the quarter. From 2003, the equivalent breakdown for Child and Working tax credits is based on household survey data. Survey data is used to estimate the breakdown into the tax expenditure and the transfer components for the other smaller tax credits.

The United Kingdom Personal Tax Credit information presented in Revenue Statistics is on a cash basis (rather than an accrual basis as for the rest of the data). PTC information on a financial year basis has been used as a proxy for calendar year. Please note that since 2015-16 tax credits is no longer split into tax expenditure and transfer component. The split for years after 2014-15 is estimated by applying the 2014-15 split to total personal tax credits expenditure. The sum of tax expenditure and transfer components may not match the total due to rounding. Total values are consistent with published figures available here: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

Please note that the sum of the corporate tax credit (CTC) components in the United Kingdom may not match total CTC's due to rounding. The CTC information presented in Revenue Statistics is on a cash basis (rather than an accrual basis as for the rest of the data). CTC information on a financial year basis has been used as a proxy for calendar year. Please note that the breakdown of total CTCs from 2002/03 to 2010/11 have been estimated using historic proportional splits applied to total published CTC information. Total values are consistent with published figures available here: https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk

Source: National Income and Expenditure; Central Statistical Office; Annual reports of His Majesty's Revenue and Customs.

Table 5.38. United States: Details of tax revenue, 1965-2022

.. Not available

Note: From 1990, data are on a year ending 31st December basis. For years up to and including 1976 the dated covered fiscal years ending 30th June. Between 1977 and 1989, Federal government data covered fiscal years ending 30th September and State & Local government data covered fiscal years ending 30th June. From 1990, data are on accrual basis. There are no separate estimates for the State and Local capital gains tax revenues. Heading 5121: In 1994 through 1996, some Federal excise taxes formerly shown separately were included in 'Other taxes,excises and undistributed, Federal government'.

Source: Federal estimates are derived from the US Budget, the Final Monthly Treasury Statement and the Annual Report of the US Treasury Department. The State and Local estimates are derived from Government Finances, published by the Bureau of the Census.

Memorandum tables

Table 5.39 shows different sources for financing social benefits, beyond compulsory social security contributions reported in section 5.1. In addition, this table shows also data on other taxes, on voluntary contributions to government and on compulsory contributions to private sector.

Table 5.40 shows social security contributions and payroll taxes paid by government. During the revision of the Interpretative Guide in 1984, the question arose of how to treat taxes paid by government. The two most prominent examples of such taxes are social security contributions and payroll taxes paid by government in respect of its employees. After a long discussion, it was decided that the data shown in this publication should continue to include taxes paid by government (see §7 of the Interpretative Guide in Annex A).

Whilst it was recognised that for certain purposes (e.g. to show the cash flow to the government sector from the private sector) it would be appropriate to eliminate taxes paid by one sector of government to another or tax payments between different units of the same sector of government, the view was taken that to record tax flows in the context of the economy as a whole required that taxes paid by government should be included in the data. This treatment ensures that the different resource flows of an economy, including the calculation of the output of government, are measured consistently in after-tax units. Nevertheless, it was decided that data on identifiable taxes paid by government should be separately identified in a memorandum item. This is the purpose of the country tables that follow.

The data that are reproduced in the following tables refer to actual compulsory payments made by general government in respect of their employees. Fictive, voluntary, and imputed contributions are excluded from these data. The definitions of social security contributions, payroll taxes and general government are those set out in §40 to §46, §47 and §3 to §4 of the Interpretative Guide. Information on the other taxes paid by government (namely property taxes and consumption taxes) is not available for most countries, although it is believed that in all countries taxes based upon payroll are the most important taxes paid by government. In many cases, the data are estimates and are not always constructed on a basis consistent with that used in the main tables.

Table 5.39. Financing social benefits, national currency

Australia, million AUD

under 2000 heading

Austria, million EUR

Belgium, million EUR

Canada, million CAD

Chile, million CLP

Czechia, million CZK

Estonia, million EUR

Finland, million EUR

France,

Germany, million EUR

Hungary, million HUF

Iceland, million ISK

Israel,

Portugal, million EUR

Slovak Republic, million EUR

Spain, million EUR

Türkiye,

SEK

.. Not available

1. The multi-jurisdictional sector contains units where jurisdiction is shared between two or more governments, or classification of a unit to a jurisdiction is otherwise unclear. The main type of units currently falling into this category is public universities.

2. There is a break in the series in 1990. The data are based on ESA 2010 from that year onwards.

6

Tax revenues by subsectors of general government

Chapter 6 provides information on tax revenues by subsectors of general government for each OECD country.

Country tables 1975, 1995, 2005, 2015 and 2022

This chapter presents detailed country information on tax revenues by level of government. The data have been attributed to the sub-sectors of general government identified in section A.12 of the Interpretative Guide (see Annex A) and the attribution criteria used are those set out in that guide.

Table 6.1. Australia, tax revenues by sub-sectors of government

Table

6.2. Austria, tax

revenues by sub-sectors of government

.. Not available

Note: Including

Table 6.3. Belgium, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.4. Canada, tax revenues by sub-sectors of government

Table 6.5. Chile, tax revenues by sub-sectors of government

Table 6.6. Colombia, tax revenues by sub-sectors of government

Table 6.7. Costa Rica, tax revenues by sub-sectors of government

Table 6.8. Czechia, tax revenues by sub-sectors of government

Table 6.9. Denmark, tax revenues by sub-sectors of government

Million DKK

Note:

Table 6.10. Estonia, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.11. Finland, tax revenues by sub-sectors of government

Note:

Table 6.12. France, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.13.

Germany,

tax revenues by sub-sectors of government

Table 6.14. Greece, tax revenues by sub-sectors of government

.. Not available

Note: Including taxes collected on behalf of the European Union.

Table 6.15. Hungary, tax revenues by sub-sectors of government

HUF

.. Not available

Note:

Table 6.16. Iceland, tax revenues by sub-sectors of government

Table 6.17. Ireland, tax revenues by sub-sectors of government

.. Not available

Note: Including taxes collected on behalf of the European Union. The personal income tax data shown for the country table for Ireland is different to the ESA2010 presentation as the expenditure component of the payable tax credits are excluded in accordance with the OECD Interpretative Guide.

Table 6.18. Israel, tax revenues by sub-sectors of government

ILS

Table 6.19. Italy, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.20. Japan, tax revenues by sub-sectors of government

Table 6.21. Korea, tax revenues by sub-sectors of government

Table 6.22. Latvia, tax revenues by sub-sectors of government

.. Not available Note:

Table 6.23. Lithuania, tax revenues by sub-sectors of government

Table 6.24. Luxembourg, tax revenues by sub-sectors

of government

.. Not available

Note: Including

Table 6.25. Mexico, tax revenues by sub-sectors of government

.. Not available

1. This adjustment is for taxes collected by Federal government in which States and Local governments have a share. Sub-central

be identified by

Table 6.26. Netherlands, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.27. New Zealand, tax revenues by sub-sectors of government

Table 6.28. Norway, tax revenues by sub-sectors of government

Table 6.29. Poland, tax revenues by sub-sectors of government

Table 6.30. Portugal, tax revenues by sub-sectors of government

.. Not available

Note:

Table

6.31. Slovak

Republic, tax revenues by sub-sectors of government

EUR

Note:

Table 6.32. Slovenia, tax revenues by sub-sectors of government

Note:

Table 6.33. Spain, tax revenues by sub-sectors of government

.. Not available

Note:

Table 6.34. Sweden, tax revenues by sub-sectors of government

SEK

.. Not available

Note: Including taxes collected on behalf of the European Union.

1. From 1985, social security contributions are classified using the SNA definition of Social security Funds which means that a proportion of these payments are shown under the heading of Central Government. Prior to that year, all such payments were classified under the heading of Social Security.

Table 6.35. Switzerland, tax revenues by sub-sectors of government

.. Not available

Table

6.36.

Türkiye, tax revenues by sub-sectors of government Million TRY

.. Not available

Table 6.37. United Kingdom, tax revenues by sub-sectors of government

Table 6.38. United States, tax revenues by sub-sectors of government

Annex A.

The OECD classification of taxes and interpretative guide

Table of Contents

A.1. The OECD Classification of Taxes

A.2. Coverage

A.3. Basis of reporting

A.4. General classification criteria

A.5 Commentaries on items of the list

A.6. Conciliation with National Accounts

A.7 Memorandum item on the financing of social security benefits

A.8 Memorandum item on identifiable taxes paid by government

A.9 Relation of OECD classification of taxes to national accounting systems

A.10 Relation of OECD classification of taxes to the international monetary fund system

A.11 Comparison of the OECD classification of taxes with other international classifications

A.12 Attribution of tax revenues by subsectors of general government

A.1 The OECD Classification of Taxes

1. 1000. Taxes on income, profits and capital gains

1100. Taxes on income, profits and capital gains of individuals

1110. On income and profits

1120. On capital gains

1200 Corporate taxes on income, profits and capital gains

1210 On income and profits

1220 On capital gains

1300 Unallocable as between 1100 and 1200 2. 2000 Social

2100. Employees 2110 On a payroll basis

2120 On an income tax basis

2200 Employers

2210. On a payroll basis

2220 On an income tax basis

2300. Self-employed or non-employed

2310. On a payroll basis

2320. On an income tax basis

2400 Unallocable as between 2100, 2200 and 2300

2410. On a payroll basis

2420. On an income tax basis

4500 Other non-recurrent taxes on property

4510 On net wealth

4520 Other non-recurrent taxes

4600 Other recurrent taxes on property

5. 5000. Taxes on goods and services

5100 Taxes on production, sale, transfer, leasing and delivery of goods and rendering of services

5110 General taxes

5111 Value added taxes

5112 Sales taxes

5113. Turnover and other general taxes on goods and services

5120 Taxes on specific goods and services

5121 Excises

5122 Profits of fiscal monopolies

5123 Customs and import duties

5124 Taxes on exports

5125. Taxes on investment goods

5126 . Taxes on specific services

5127. Other taxes on international trade and transactions

5128. Other taxes on specific goods and services

5130 Unallocable as between 5110 and 5120

5200 Taxes on use of goods, or on permission to use goods or perform activities

5210 Recurrent taxes

5211 Paid by households in respect of motor vehicles

5212 Paid by others in respect of motor vehicles

5213. Other recurrent taxes

5220 Non-recurrent taxes

5300. Unallocable as between 5100 and 5200

6. 6000. Other taxes

6100. Paid solely by business

6200 Paid by other than business or unidentifiable

A.2 Coverage

General criteria

1. In the OECD classification, the term “taxes” is confined to compulsory unrequited payments to the general government or to a supranational authority. Taxes are unrequited in the sense that benefits provided by government to taxpayers are not normally in proportion to their payments.

2. The term “tax” does not include fines, penalties and compulsory loans paid to government. Borderline cases between tax and non-tax revenues in relation to certain fees and charges are discussed in §12–15.

3. General government consists of the central administration, agencies whose operations are under its effective control, state and local governments and their administrations, certain social security schemes and autonomous governmental entities, excluding public enterprises. This definition of government follows that of the 2008 System of National Accounts (SNA).1 In that publication, the general government sector and its sub-sectors are defined in Chapter 4, paragraphs 4.117 to 4.165

4. Extra-budgetary units are part of the general government system. These are general government entities with individual budgets that are not fully covered by the main or general budget. These entities operate under the authority or control of a central, state, or local government. Extra- budgetary entities may have their own revenue sources, which may be supplemented by grants (transfers) from the general budget or from other sources. Even though their budgets may be subject to approval by the legislature, similar to that of budgetary accounts, they have discretion over the volume and composition of their spending. Such entities may be established to carry out specific government functions, such as road construction, or the nonmarket production of health or education services. Budgetary arrangements vary widely across countries, and various terms are used to describe these entities, but they are often referred to as “extrabudgetary funds” or “decentralised agencies.”

5. Compulsory, unrequited payments collected by national governments and paid to supranational authorities are also included as taxes under the definition in paragraph 1. Taxes that are collected by national governments and paid to a supranational authority are included as tax revenues at the level of the supranational authority in the SNA2008 (paragraphs 22.60-61, 22.88 and 22.99 refer) and the ESA2010 (paragraph 20.165 refers). In Revenue Statistics, these taxes include customs duties, contributions to the EU Single Resolution Fund, and any other taxes collected by EU member states on behalf of the European Union. They are included in the tax revenue amounts in the country tables (Chapter 5) of the country in which they are collected and are attributed to the supranational level of government (see §102).

6. In countries where the church forms part of general government, church taxes are included, provided they meet the criteria set out in §1 above. As the data refer to receipts of general government and to supranational authorities, levies paid to non-government bodies, welfare agencies or social insurance schemes outside general government, trade unions or trade associations, even where such levies are compulsory, are excluded. Compulsory payments to general government earmarked for such bodies are, however, included, provided that the government is not simply acting in an agency capacity. 2 Profits from fiscal monopolies are distinguished from those of other public enterprises and are treated as taxes because they reflect the exercise of the taxing power of the state by the use of monopoly powers (see §66–68), as are profits received by the government from the purchase and sale of foreign exchange at different rates (see §76).

7. Taxes paid by governments (e.g., social security contributions and payroll taxes paid by governments in their capacity as an employer, consumption taxes on their purchases or taxes on their property) are not excluded from the data provided. However, where it is possible to identify the amounts of revenue involved,3 they are shown in Table 5.40 of this Report.

8. The relationship between this classification and that of the System of National Accounts (SNA) is set out in Sections A.9 and A.11 below. Because of the differences between the two classifications, the data shown in national accounts are sometimes calculated or classified differently from the practice set out in this guide. These and other differences are mentioned where appropriate (e.g., in §31 below) but it is not possible to refer to all of them. There may also be some differences between this classification and that employed domestically by certain national administrations (e.g., see §13 below), so that OECD and national statistics data may not always be consistent: any such differences, however, are likely to be very slight in terms of amounts of revenues involved.

Social security contributions

9. Compulsory social security contributions, as defined in §40, and paid to general government, are treated here as tax revenues. They may, however, differ from other taxes in that the receipt of social security benefits depends, in most countries, upon appropriate contributions having been made, although the size of the benefits is not necessarily related to the amount of the contributions. Better comparability between countries is obtained by treating social security contributions as taxes, but they are listed under a separate heading so that they can be distinguished in any analysis.

10. The strict dividing line between tax revenues (compulsory unrequited payments to general government or a supranational authority) and non-tax compulsory payments (NTCPs) (payments that are either requited or made to other institutions) is clearly defined. However, within the range of different compulsory payments to governments existing across countries, it is not always straightforward in practice to decide whether specific payments are either taxes or NTCPs. For example, compulsory pension savings that are controlled by general government and that accumulate on an individual account earning a market return or a rate that compensates for inflation would at first sight be categorised as NTCPs as opposed to taxes. However, even these payments might still be ‘unrequited’ and therefore classify as taxes instead of NTCPs (for example if these pension savings are not paid out when the taxpayer dies before reaching the pension age and the funds are then used to provide a minimum pension to all taxpayers that are insured). These issues result in the social security revenue figures reported for most countries being based on the premise that all types of compulsory payments to general government are judged to some extent to have a re-distributional element. It should be noted that this conclusion is based on a typically broad interpretation of the term ‘unrequited’ in the tax definition.

11. Social security contributions which are either voluntary or not payable to general government (see §1) are not treated as taxes, though in some countries, as indicated in the country footnotes, there are difficulties in completely eliminating voluntary contributions and certain compulsory payments to the private sector from the revenue figures. Imputed social security contributions are also not treated as taxes.

Fees, user charges and licence fees

12. Apart from vehicle licence fees, which are universally regarded as taxes, it is not easy to distinguish between those fees and user charges which are to be treated as taxes and those which are not, since, whilst a fee or charge is levied in connection with a specific service or activity, the strength of the link between the fee and the service provided may vary considerably, as may the relation between the amount of the fee and the cost of providing the service. Where the recipient of a service pays a fee clearly related to the cost of providing the service, the levy may be regarded as requited and under the definition of §1 would not be considered as a tax. In the following cases, however, a levy could be considered as ‘unrequited’:

a) where the charge greatly exceeds the cost of providing the service;

b) where the payer of the levy is not the receiver of the benefit (e.g., a fee collected from slaughterhouses to finance a service which is provided to farmers);

c) where government is not providing a specific service in return for the levy which it receives even though a licence may be issued to the payer (e.g., where the government grants a hunting, fishing or shooting licence which is not accompanied by the right to use a specific area of government land);

d) where benefits are received only by those paying the levy but the benefits received by each individual are not necessarily in proportion to his payments (e.g., a milk marketing levy paid by dairy farmers and used to promote the consumption of milk).

e) where the payer of the levy cannot opt out from making payments when not using the service (e.g. public broadcast fees where the payer is obliged to pay the levy even if not consuming public broadcast service).

13. In marginal cases, however, the application of the criteria set out in §1 can be particularly difficult. The solution adopted — given the desirability of international uniformity and the relatively small amounts of revenue usually involved — is to follow the predominant practice among tax administrations rather than to allow each country to adopt its own view as to whether such levies are regarded as taxes or as non-tax revenue.4

14. A list of the main fees and charges in question and their normal5 treatment in this publication is as follows:

Non-tax revenues: court fees; driving licence fees; harbour fees; passport fees

Taxes within heading 5200 permission to perform such activities as distributing films; hunting, fishing and shooting; providing entertainment or gambling facilities; selling alcohol or tobacco; permission to own dogs or to use or own motor vehicles or guns; severance taxes

15. In practice, it may not always be possible to isolate tax receipts from non-tax revenue receipts when they are recorded together. If it is estimated that the bulk of the receipts derive from non-tax revenues, the whole amount involved is treated as a non-tax revenue; otherwise, such government receipts are included and classified according to the rules provided in §33 below.

Royalties

16. The ownership of subsoil assets in the form of deposits of minerals or fossil fuels (coal, oil, or natural gas) depends upon the way in which property rights are defined by law and also on international agreements in the case of deposits below international waters. In some cases, either the ground below which the mineral deposits are located, the deposits themselves or both may belong to a local or central government unit.

17. In such cases, these general government units may grant leases to other institutional units that permit them to extract these deposits over a specified period of time in return for a payment or series of payments. These payments are often described as ‘royalties’ but they are essentially rent that accrues to owners of natural resources in return for putting these assets at the disposal of other units for specified periods of time. The rent may take the form of periodic payments of fixed amounts, irrespective of the rate of extraction, or, more commonly, they may be a function of the quantity, volume, or value of the asset extracted. Enterprises engaged in exploration on government land may make payments to general government units in exchange for the right to undertake test drilling or otherwise investigate the existence and location of subsoil assets. Such payments are also recorded as rents even though no extraction may take place. These payments are therefore classified as non-tax revenues.

18. The same principles apply when other institutional units are granted leases that permit them to fell timber in natural forests on land owned by general government units. These payments are also classified as non-tax revenues.

19. These rents or royalties paid to general government should not be confused with taxes on income and profits, severance taxes, business licenses, or other taxes. If the payments are levied on the profits from the extraction activity, then they should be classified as taxes on incomes, profits and gains (1000). In addition, any severance payments that are imposed on the extraction of minerals and fossil fuels from reserves owned privately or by another government should be classified as taxes. Payments related to the gross value of production should be classified as other taxes on goods and services (5128). Payments for a license or permit to conduct extraction operations should be classified as taxes on use of goods and on permission to use goods or perform activities (5213).

Fines and penalties

20. In principle, fines and penalties charged on overdue taxes or penalties imposed for the attempted evasion of taxes should not be recorded as tax revenues. However, it may not be possible to separate payments of fines or other penalties from the revenues from the taxes to which they relate. In this case, the fines and penalties relating to a particular tax are recorded together with the revenues from that tax and fines and penalties paid with revenue from unidentifiable taxes are classified as other taxes in Category 6000. Fines not relating to tax offences (e.g., for parking offences), or not identifiable as relating to tax offences, are also not treated as tax revenues.

A.3 Basis of reporting

Accrual or cash reporting

21. The data reported in the Revenue Statistics publications for recent years are predominantly recorded on an accrual basis for OECD countries, i.e. recorded at the time that the tax liability was created. Further information is provided in the footnotes to the country table in Chapter 5 of the Report.

22. However, data for earlier years and for non-OECD countries are still predominantly recorded on a cash basis, i.e. at the time at which the payment was received by government. Thus, for example, taxes withheld by employers in one year but paid to the government in the following year and taxes due in one year but actually paid in the following year are both included in the receipts of the second year. Corrective transactions, such as refunds, repayments and drawbacks, are deducted from gross revenues of the period in which they are made

23. Data on tax revenues are recorded without offsets for the administrative expenses connected with tax collection. Similarly, where the proceeds of tax are used to subsidise particular members of the community, the subsidy is not deducted from the yield of the tax, though the tax may be shown net of subsidies in the national records of some countries.

24. As regards fiscal monopolies (heading 5122), only the amount actually transferred to the government is included in government revenues. However, if any expenditures of fiscal monopolies are considered to be government expenditures (e.g., social expenditures undertaken by fiscal monopolies at the direction of the government) they are added back for the purpose of arriving at tax revenue figures (see §66 below).

The distinction between tax and expenditure provisions6

25. Because this publication is concerned only with the revenue side of government operations, no account being taken of the expenditure side, a distinction has to be made between tax and expenditure provisions. Normally there is no difficulty in making this distinction as expenditures are made outside the tax system and the tax accounts and under legislation separate from the tax legislation. In borderline cases, cash flow is used to distinguish between tax provisions and expenditure provisions. Insofar as a provision

affects the flow of tax payments from the taxpayer to the government, it is regarded as a tax provision and is taken into account in the data shown in this publication. A provision which does not affect this flow is seen as an expenditure provision and is disregarded in the data recorded in this publication.

26. Tax allowances, exemptions and deductions against the tax base clearly affect the amount of tax paid to the government and are therefore considered as tax provisions. At the other extreme, those subsidies which cannot be offset against tax liability and which are clearly not connected with the assessment process, do not reduce tax revenues as recorded in this publication. Tax credits are amounts deductible from tax payable (as distinct from deductions from the tax base). Two types of tax credits are distinguished, those (referred to here as wastable tax credits) which are limited to the amount of the tax liability and therefore cannot give rise to a payment by the authorities to the taxpayer, and those (referred to as non-wastable tax credits) which are not so limited, so that the excess of the credit over the tax liability can be paid to the taxpayer.7 A wastable tax credit, like a tax allowance, clearly affects the amount of tax paid to the government, and is therefore considered as a tax provision. The practice followed for nonwastable tax credits8 is to distinguish between the ‘tax expenditure component’,9 which is that portion of the credit that is used to reduce or eliminate a taxpayer’s liability, and the ‘transfer component’, which is the portion that exceeds the taxpayer’s liability and is paid to that taxpayer. Reported tax revenues should be reduced by the amount of the tax expenditure component but not by the amount of the transfer component. In addition, the amounts of the tax expenditure and transfer components should be reported as memorandum items in the country tables. Countries that are unable to distinguish between the tax expenditure and transfer components should indicate whether or not the tax revenues have been reduced by the total of these components, and provide any available estimates of the amounts of the two components. Further information is given in Chapter 1 of the Report, which illustrates the effect of alternative treatments of non-wastable tax credits on tax to GDP.

Calendar and fiscal years

27. National authorities whose fiscal years do not correspond to the calendar year show data, where possible, on a calendar year basis to permit maximum comparability with the data of other countries. There remain a few countries where data refer to fiscal years. For these the GDP data used in the comparative tables also correspond to the fiscal years.

A.4 General classification criteria

The main classification criteria

28. The classification of receipts among the main headings (1000, 2000, 3000, 4000, 5000 and 6000) is generally governed by the base on which the tax is levied: 1000 income, profits and capital gains; 2000 and 3000 earnings, payroll or number of employees; 4000 property; 5000 goods and services; 6000 multiple bases, other bases or unidentifiable bases. Where a tax is calculated on more than one base, the receipts are, where possible, split among the various headings (see §33 and §84). The headings 4000 and 5000 cover not only taxes where the tax base is the property, goods or services themselves but also certain related taxes. Thus, taxes on the transfer of property are included in 440010 and taxes on the use of goods or on permission to perform activities in 5200. In headings 4000 and 5000 a distinction is made in certain sub-headings between recurrent and non-recurrent taxes: recurrent taxes are defined as those levied at regular intervals (usually annually) and non-recurrent taxes are levied once and for all (see also §48 to §51, §54, §55 and §81 for particular applications of this distinction).

29. Earmarking of a tax for specific purposes does not affect the classification of tax receipts. However, as explained in §40 on the classification of social security contributions, the conferment of an entitlement to social benefits is crucial to the definition of the 2000 main heading.

30. The way that a tax is levied or collected (e.g., by use of stamps) does not affect classification.

Classification of taxpayers

31. In certain sub-headings, distinctions are made between different categories of taxpayers. These distinctions vary from tax to tax:

a) Between individuals and corporations in relation to income and net wealth taxes

The basic distinction is that corporation income taxes, as distinct from individual income taxes, are levied on the corporation as an entity, not on the individuals who own it, and without regard to the personal circumstances of these individuals. The same distinction applies to net wealth taxes on corporations and those on individuals. Taxes paid on the profits of partnerships and the income of institutions, such as life insurance or pension funds, are classified according to the same rule. They are classified as corporate taxes (1200) if they are charged on the partnership or institution as an entity without regard to the personal circumstances of the owners. Otherwise, they are treated as individual taxes (1100). Usually, there is different legislation for the corporation taxes and for the individual taxes.11 The distinction made here between individuals and corporations does not follow the sector classification between households, enterprises, and so on of the System of National Accounts for income and outlay accounts. The SNA classification requires certain unincorporated businesses12 to be excluded from the household sector and included with non-financial enterprises and financial institutions. The tax on the profits of these businesses, however, cannot always be separated from the tax on the other income of their owners, or can be separated only on an arbitrary basis. No attempt at this separation is made here and the whole of the individual income tax is shown together without regard to the nature of the income chargeable.

b) Between households and others in relation to taxes on immovable property

Here the distinction is that adopted by the SNA for the production and consumption expenditure accounts. The distinction is between households as consumers (i.e. excluding non-incorporated business) on the one hand and producers on the other hand. However, taxes on dwellings occupied by households, whether paid by owner-occupiers, tenants or landlords, are classified under households. This follows the common distinction made between taxes on domestic property versus taxes on business property. Some countries are not, however, in a position to make this distinction.

c) Between households and others in relation to motor vehicle licences

Here the distinction is between households as consumers on the one hand and producers on the other, as in the production and consumption expenditure accounts of the SNA.

d) Between business and others in relation to the residual taxes (6000)

The distinction is the same as in c) above between producers on the one hand and households as consumers on the other hand. Taxes which are included under the heading 6000 because they involve more than one tax base or because the tax base does not fall within any of the previous categories but which are identifiable as levyable only on producers and not on households are included under ‘business’. The rest of the taxes which are included under the heading 6000 are shown as ‘other’ or non- identified.

Surcharges

32. Receipts from surcharges in respect of particular taxes are usually classified with the receipts from the relevant tax whether or not the surcharge is temporary. If, however, the surcharge has a characteristic which would render it classifiable in a different heading of the OECD list, receipts from the surcharge are classified under that heading separately from the relevant tax.

Unidentifiable tax receipts and residual sub-headings

33. A number of cases arise where taxes cannot be identified as belonging entirely to a heading or sub-heading of the OECD classification and the following practices are applied in such cases:

a) The heading is known, but it is not known how receipts should be allocated between subheadings: receipts are classified in the appropriate residual sub-heading (1300, 2400, 4520, 4600, 5128, 5130, 5300 or 6200).

b) It is known that the bulk of receipts from a group of taxes (usually local taxes) is derived from taxes within a particular heading or sub-heading, but some of the taxes in the group whose amount cannot be precisely ascertained may be classifiable in other headings or sub-headings: receipts are shown in the heading or sub-heading under which most of the receipts fall.

c) Neither the heading nor sub-heading of a tax (usually local) can be identified: the tax is classified in 6200 unless it is known that it is a tax on business in which case it is classified in 6100.

A.5 Commentaries on items of the list

1000 — Taxes on income, profits and capital gains

34. This heading covers taxes levied on the net income or profits (i.e. gross income minus allowable tax reliefs) of individuals and enterprises. Also covered are taxes levied on the capital gains of individuals and enterprises, and gains from gambling.

35. Included in the heading are:

a) taxes levied predominantly on income or profits, though partially on other bases. Taxes on various bases which are not predominantly income or profits are classified according to the principles laid down in §33 and §84;

b) taxes on property, which are levied on a presumed or estimated income as part of an income tax (see also §48(a), (c) and (d));

c) compulsory payments to social security fund contributions that are levied on income but do not confer an entitlement to social benefits. When such contributions do confer an entitlement to social benefits, they are included in heading 2000 (see §40);

d) receipts from integrated scheduler income tax systems are classified as a whole in this heading, even though certain of the scheduler taxes may be based upon gross income and may not take into account the personal circumstances of the taxpayer.

36. The main subdivision of this heading is between levies on individuals (1100) and those on corporate enterprises (1200). Under each subdivision a distinction is made between taxes on income and profits (1110 and 1210), and taxes on capital gains (1120 and 1220). If certain receipts cannot be identified as appropriate to either 1100 or 1200, or if in practice this distinction cannot be made (e.g., because there are no reliable data on the recipients of payments from which withholding taxes are deducted) they are classified in 1300 as not-allocable.

Treatment of credits under imputation systems

37. Under imputation systems of corporate income tax, a company’s shareholders are wholly or partly relieved of their liability to income tax on dividends paid by the company out of income or profits liable to corporate income tax. In countries with such systems,13 part of the tax on the company’s profits is available

to provide relief against the shareholders’ own tax liability. The relief to the shareholder takes the form of a tax credit, the amount of which may be less than, equal to, or more than the shareholder’s overall tax liability. If the tax credit exceeds this tax liability the excess may be payable to the shareholder. As this type of tax credit is an integral part of the imputation system of corporate income tax, any payment to the shareholders is treated as a repayment of tax and not as expenditure (compare the treatment of other tax credits described in §26).

38. As the tax credit under imputation systems (even when exceeding tax liability) is to be regarded as a tax provision, the question arises whether it should be deducted from individual income tax receipts (1110) or corporate income tax receipts (1210). In this Report, the full amount of corporate income tax paid is shown under 1210 and no imputed tax is included under 1110. Thus, the full amount of the credit reduces the amount of 1110 whether the credit results in a reduction of personal income tax liability or whether an actual refund is made because the credit exceeds the income tax liability. (Where, however, such tax credits are deducted from corporation tax in respect of dividends paid to corporations the amounts are deducted from the receipts of 1210).

1120 and 1220 — Taxes on capital gains

39. These sub-headings comprise taxes imposed on capital gains, 1120 covering those levied on the gains of individuals and 1220 those levied on the gains of corporate enterprises, where receipts from such taxes can be separately identified. In many countries, this is not the case and the receipts from such taxes are then classified with those from the income tax. Heading 1120 also includes taxes on gains from gambling.

2000 — Social security contributions

40. Classified here are all compulsory payments to general government that confer an entitlement to receive a (contingent) future social benefit. Such payments are usually earmarked to finance social benefits and are often paid to institutions of general government that provide such benefits. However, such earmarking is not part of the definition of social security contributions and is not required for a tax to be classified here. However, conferment of an entitlement is required for a tax to be classified under this heading. So, levies on income or payroll that are earmarked for social security funds but do not confer an entitlement to benefit are excluded from this heading and shown under personal income taxes (1100) or taxes on payroll and workforce (3000). Taxes on other bases, such as goods and services, which are earmarked for social security benefits are not shown here but are classified according to their respective bases because they generally confer no entitlement to social security benefits.

41. Contributions for the following types of social security benefits would, inter alia, be included: unemployment insurance benefits and supplements, accident, injury and sickness benefits, old-age, disability and survivors’ pensions, family allowances, reimbursements for medical and hospital expenses or provision of hospital or medical services. Contributions may be levied on both employees and employers.

42. Contributions may be based on earnings or payroll (‘on a payroll basis’) or on net income after deductions and exemptions for personal circumstances (‘on an income tax basis’), and the revenues from the two bases should be separately identified if possible. However, where contributions to a general social security scheme are on a payroll basis, but the contributions of particular groups (such as the selfemployed) cannot be assessed on this basis and net income is used as a proxy for gross earnings, the receipts may still be classified as being on a payroll basis. In principle, this heading excludes voluntary contributions paid to social security schemes. When separately identifiable these are shown in the memorandum item on the financing of social security benefits. In practice, however, they cannot always be separately identified from compulsory contributions, in which case they are included in this heading.

43. Contributions to social insurance schemes which are not institutions of general government and to other types of insurance schemes, provident funds, pension funds, friendly societies or other saving schemes are not considered as social security contributions. Provident funds are arrangements under which the contributions of each employee and of the corresponding employer on his/her behalf are kept in a separate account earning interest and withdrawable under specific circumstances. Pension funds are separately organised schemes negotiated between employees and employers and carry provisions for different contributions and benefits, sometimes more directly tied to salary levels and length of service than under social security schemes. When contributions to these schemes are compulsory or quasi-compulsory (e.g., by virtue of agreement with professional and union organisations) they are shown in the memorandum item (refer to Table 5.39 of the Report).

44. Contributions by government employees and by governments in respect of their employees, to social security schemes classified within general government are included in this heading. Contributions to separate schemes for government employees, which can be regarded as replacing general social security schemes, are also regarded as taxes.14 Where, however, a separate scheme is not seen as replacing a general scheme and has been negotiated between the government, in its role as an employer, and its employees, it is not regarded as social security and contributions to it are not regarded as taxes, even though the scheme may have been established by legislation.

45. This heading excludes ‘imputed’ contributions, which correspond to social benefits paid directly by employers to their employees or former employees or to their representatives (e.g., when employers are legally obliged to pay sickness benefits for a certain period).

46. Contributions are divided into those of employees (2100), employers (2200), and self-employed or non-employed (2300), and then further sub-divided according to the basis on which they are levied. Employees are defined for this purpose as all persons engaged in activities of business units, government bodies, private non-profit institutions, or other paid employment, except the proprietors and their unpaid family members in the case of unincorporated businesses. Members of the armed forces are included, irrespective of the duration and type of their service, if they contribute to social security schemes. The contributions of employers are defined as their payments on account of their employees to social security schemes. Where employees or employers are required to continue the payment of social security contributions when the employee becomes unemployed these contributions, data permitting, are shown in 2100 and 2200 respectively. Accordingly, the sub-heading 2300 is confined to contributions paid by the self-employed and by those outside of the labour force (e.g., disabled or retired individuals).

3000

—

Taxes on payroll and workforce

47. These consist of taxes payable by enterprises assessed either as a proportion of the wages or salaries paid or as a fixed amount per person employed. They do not include compulsory social security contributions paid by employers or any taxes paid by employees themselves out of their wages or salaries

4000

—

Taxes on property

48. This heading covers recurrent and non-recurrent taxes on the use, ownership or transfer of property. These include taxes on immovable property or net wealth, taxes on the change of ownership of property through inheritance or gift and taxes on financial and capital transactions. The following kinds of tax are excluded from this heading:

a) taxes on capital gains resulting from the sale of a property (1120 or 1220);

b) taxes on the use of goods or on permission to use goods or perform activities (5200); see §78;

c) taxes on immovable property levied on the basis of a presumed net income which take into account the personal circumstances of the taxpayer. They are classified as income taxes along with taxes on income and capital gains derived from property (1100);

d) taxes on the use of property for residence, where the tax is payable by either proprietor or tenant and the amount payable is a function of the user’s personal circumstances (pay, dependants, and so on). They are classified as taxes on income (1100);

e) taxes on building in excess of permitted maximum density, taxes on the enlargement, construction or alteration of certain buildings beyond a permitted value and taxes on building construction. They are classified as taxes on permission to perform activities (5200);

f) taxes on the use of one’s own property for special trading purposes like selling alcohol, tobacco, meat or for exploitation of land resources (e.g., United States severance taxes). They are classified as taxes on permission to perform activities (5200).

4100 — Recurrent taxes on immovable property

49. This sub-heading covers taxes levied regularly in respect of the use or ownership of immovable property.

• these taxes are levied on land and buildings;

• they can be in the form of a percentage of an assessed property value based on a national rental income, sales price, or capitalised yield; or in terms of other characteristics of real property, ( for example size or location ) from which a presumed rent or capital value can be derived.

• such taxes can be levied on proprietors, tenants, or both. They can also be paid by one level of government to another level of government in respect of property under the jurisdiction of the latter.

• debts are not taken into account in the assessment of these taxes, and they differ from taxes on net wealth in this respect.

50. Taxes on immovable property are further sub-divided into those paid by households (4110) and those paid by other entities (4120), according to the criteria set out in §31(b) above.

4200

—

Recurrent taxes on net wealth

51. This sub-heading covers taxes levied regularly (in most cases annually) on net wealth, i.e. taxes on a wide range of movable and immovable property, net of debt. It is sub-divided into taxes paid by individuals (4210) and taxes paid by corporate enterprises (4220) according to the criteria set out in §31(a) above. If separate figures exist for receipts paid by institutions, the tax payments involved are added to those paid by corporations.

4300 — Estate, inheritance and gift taxes

52. This sub-heading is divided into taxes on estates and inheritances (4310) and taxes on gifts (4320).15 Estate taxes are charged on the amount of the total estate whereas inheritance taxes are charged on the shares of the individual recipients; in addition the latter may take into account the relationship of the individual recipients to the deceased.

4400 — Taxes on financial and capital transactions

53. This sub-heading comprises, inter alia, taxes on the issue, transfer, purchase and sale of nonfinancial and financial assets (including foreign exchange or securities), taxes on cheques and other forms of payment, and taxes levied on specific legal transactions such as validation of contracts and the sale of immovable property. The heading does not include:

a) taxes on the use of goods or property or permission to perform certain activities (5200);

b) fees paid to cover court charges, charges for birth, marriage or death certificates, which are normally regarded as non-tax revenues (see §12);

c) taxes on capital gains (1000);

d) recurrent taxes on immovable property (4100);

e) recurrent taxes on net wealth (4200);

f) once-and-for-all levies on property or wealth (4500);

g) stamp taxes not related to financial and capital transactions

i. Stamp taxes on the sale of specific products, such as alcoholic beverages or tobacco (5121);

ii. Stamp taxes restricted by law to imported products (5123) or to exported products (5124); or

iii. Stamp taxes not falling exclusively on a single category of transaction (6000).

4500 — Other non-recurrent taxes on property

54. This sub-heading covers once-and-for-all, as distinct from recurrent, levies on property. It is divided into taxes on net wealth (4510) and other non-recurrent taxes on property (4520). Heading 4510 would include taxes levied to meet emergency expenditures, or for redistribution purposes. Heading 4520 would cover taxes levied to take account of increases in land value due to permission given to develop or provision of additional local facilities by general government, any taxes on the revaluation of capital and once-and-for-all taxes on particular items of property.

4600 — Other recurrent taxes on property

55. These rarely exist in OECD member countries, but the heading would include taxes on goods such as cattle, jewellery, windows, and other external signs of wealth.

5000 — Taxes on goods and services

56. All taxes and duties levied on the production, extraction, sale, transfer, leasing or delivery of goods, and the rendering of services (5100), or in respect of the use of goods or permission to use goods or to perform activities (5200) are included here. The heading thus covers:

a) multi-stage cumulative taxes;

b) general sales taxes — whether levied at manufacture/production, wholesale or retail level;

c) value-added taxes;

d) excises;

e) taxes levied on the import and export of goods;

f) taxes levied in respect of the use of goods and taxes on permission to use goods, or perform certain activities;

g) taxes on the extraction, processing or production of minerals and other products.

57. Borderline cases between this heading and heading 4000 (taxes on property) and 6100 (other taxes on business) are referred to in §48, §53 and §80. Residual sub-headings (5300) and (5130) cover tax receipts which cannot be allocated between 5100 and 5200 and between 5110 and 5120, respectively; see §33

5100 — Taxes on the production, sale, transfer, leasing and delivery of goods and rendering of services

58. This sub-heading consists of all taxes, levied on transactions in goods and services on the basis of their intrinsic characteristics (e.g., value, weight of tobacco, strength of alcohol, and so on) as distinct from taxes imposed on the use of goods, or permission to use goods or perform activities, which fall under 5200.

5110 — General taxes on goods and services

59. This sub-heading includes all taxes, other than import and export duties (5123 and 5124), levied on the production, leasing, transfer, delivery or sales of a wide range of goods and/or the rendering of a wide range of services, irrespective of whether they are domestically produced or imported and irrespective of the stage of production or distribution at which they are levied. It thus covers value-added taxes, sales taxes and multi-stage cumulative taxes. Receipts from border adjustments in respect of such taxes when goods are imported are added to gross receipts for this category, and repayments of such taxes when goods are exported are deducted. These taxes are subdivided into 5111 value-added taxes, 5112 sales taxes, 5113 turnover and other general taxes on goods and services.

60. Borderline cases arise between this heading and taxes on specific goods (5120) when taxes are levied on a large number of goods, for example, the United Kingdom purchase tax (repealed in 1973) and the Japanese commodity tax (repealed in 1988). In conformity with national views, the former United Kingdom purchase tax is classified as a general tax (5112) and the former Japanese commodity tax as excises (5121).

5111 — Value-added taxes

61. All general consumption taxes charged on value- added are classified in this sub-heading, irrespective of the method of deduction and the stages at which the taxes are levied. In practice, all OECD countries with value-added taxes normally allow immediate deduction of taxes on purchases by all but the final consumer and impose tax at all stages. In some countries the heading may include certain taxes, such as those on financial and insurance activities, either because receipts from them cannot be identified separately from those from the value-added tax, or because they are regarded as an integral part of the value-added tax, even though similar taxes in other countries might be classified elsewhere (e.g., 5126 as taxes on services or 4400 as taxes on financial and capital transactions).

5112 — Sales taxes

62. All general taxes levied at one stage only, whether at manufacturing or production, wholesale or retail stage are classified here.

5113 — Turnover and other general taxes on goods and services

63. These are multi-stage cumulative taxes and taxes where elements of consumption taxes are combined with multistage taxes. These taxes are levied each time a transaction takes place without deduction for taxes paid on inputs. Multi-stage taxes can be combined with elements of value-added or sales taxes

5120 — Taxes on specific goods and services

64. Excises, profits generated and transferred from fiscal monopolies, and customs and imports duties as well as taxes on exports, foreign exchange transactions, investment goods and betting stakes and special taxes on services, which do not form part of a general tax of 5110, are included in this category.

5121 — Excises

65. Excises are taxes levied as a product specific unit tax on a predefined limited range of goods. Excises are usually levied at differentiated rates on nonessential or luxury goods, alcoholic beverages, tobacco, and energy. Excises may be imposed at any stage of production or distribution and are usually assessed as a specific charge per unit based on characteristics by reference to the value, weight, strength, or quantity of the product. Included are special taxes on individual products such as sugar, sugar beets, matches, and chocolates; taxes levied at varying rates on a certain range of goods; and taxes levied on tobacco goods, alcoholic drinks, motor fuels, and hydrocarbon oils. If a tax collected principally on imported goods also applies, or would apply, under the same law to comparable domestically produced goods, then the revenue from this tax is classified as arising from excises rather than from import duties. This principle applies even if there is no comparable domestic production or no possibility of such production. Taxes on the use of utilities such as water, electricity, gas, and energy are regarded as excises rather than taxes on specific services (5126). Excises exclude those taxes that are levied as general taxes on goods and services (5110); profits of fiscal monopolies (5122); customs and other import duties (5123); or taxes on exports (5124).

5122 — Profits of fiscal monopolies

66. This sub-heading covers that part of the profits of fiscal monopolies which is transferred to general government or which is used to finance any expenditures considered to be government expenditures (see §24). Amounts are shown when they are transferred to general government or used to make expenditures considered to be government expenditures.

67. Fiscal monopolies reflect the exercise of the taxing power of government by the use of monopoly powers. Fiscal monopolies are non-financial public enterprises exercising a monopoly in most cases over the production or distribution of tobacco, alcoholic beverages, salt, matches, playing cards and petroleum or agricultural products (i.e. on the kind of products which are likely to be, alternatively or additionally, subject to the excises of 5121), to raise the government revenues which in other countries are gathered through taxes on dealings in such commodities by private business units. The government monopoly may be at the production stage or, as in the case of government-owned and controlled liquor stores, at the distribution stage.

68. Fiscal monopolies are distinguished from public utilities such as rail transport, electricity, post offices, and other communications, which may enjoy a monopoly or quasi-monopoly position but where the primary purpose is normally to provide basic services rather than to raise revenue for government. Transfers from such other public enterprises to the government are considered as non-tax revenues. The traditional concept of fiscal monopoly is not generally extended to include state lotteries, the profits of which are usually accordingly regarded as non-tax revenues. However, they can be included as tax revenues if the prime reason for their operation is to raise revenues to finance government expenditure. Fiscal monopoly profits are distinguished from export and import monopoly profits (5127) transferred from marketing boards or other enterprises dealing with international trade.

5123 — Customs and other import duties

69. Taxes, stamp duties and surcharges restricted by law to imported products are included here. Also included are levies on imported agricultural products which are imposed in member countries of the European Union and amounts paid by certain of these countries under the Monetary Compensation Accounts (MCA) system.16 Customs duties collected by European Union member states on behalf of the European Union are reported under this heading at the supranational level of government in the country tables (in Chapter 5 of the Report). Excluded here are taxes collected on imports as part of a general tax on goods and services, or an excise applicable to both imported and domestically produced goods.

5124 — Taxes on exports

70. In the 1970s, export duties were levied in Australia, Canada and Portugal as a regular measure and they have been used in Finland for counter-cyclical purposes. Some member countries of the European Union pay, as part of the MCA system, a levy on exports (see note 16 to §69). Where these amounts are identifiable, they are shown in this heading. This heading does not include repayments of general consumption taxes or excises or customs duties on exported goods, which should be deducted from the gross receipts under 5110, 5121 or 5123, as appropriate.

5125 — Taxes on investment goods

71. This sub-heading covers taxes on investment goods, such as machinery. These taxes may be imposed for a number of years or temporarily for counter-cyclical purposes. Taxes on industrial inputs which are also levied on consumers [e.g., the Swedish energy tax which is classified under (5121)] are not included here.

5126 — Taxes on specific services

72. All taxes assessed on the payment for specific services, such as taxes on insurance premiums, banking services, gambling and betting stakes (e.g., from horse races, football pools, lottery tickets), transport, entertainment, restaurant and advertising charges, fall into this category. Taxes on entry to casinos, races, other similar events or venues as well as stamp taxes on specific services are also classified under this heading. Taxes levied on the gross income of companies providing a specific service (e.g. transportation [including airport and other passenger taxes] insurance, banking, entertainment, restaurants, and advertising) are also classified under this heading.

73. Tax revenues from bank levies and payments to deposit insurance and financial stability schemes are also included here:

• Compulsory payments of stability fees, bank levies and deposit insurance should generally be treated as tax revenues where the payments are made to general government or supranational authorities and are allocated to the governments’ consolidated or general funds so that the government is free to make immediate use of the money for the purposes that it chooses. This principle would apply regardless of whether the government is promising to make payments to guarantee the banks’ customer deposits in some future contingency.

• If the compulsory payments are made to general government and placed in funds that are earmarked to be entirely channelled back to the sector of the economy that comprises the companies that are subject to the payment, they would still generally be treated as tax revenues on the grounds that the funds would be available for the government and would reduce its budget deficit, the fee is unrequited for an individual entity and the amounts raised could be unrelated to any eventual pay out to depositors or expenditure on wider support for the financial sector.

• Payments to made to the smaller long-standing schemes for insuring ‘retail’ deposits, where the payment levels are consistent with the costs of insurance should be classified as fee for service

• Any payments which involve governments realising the assets of a failed institution or receiving a priority claim on its assets in liquidation in order to fund payments of compensation to customers for their lost deposits would be treated as a fee for a service as opposed to tax revenues.

• Compulsory payments that are made to funds operated outside the government sector and nonstate institutions backed by the deposit takers and all payments to voluntary schemes should not be treated as tax revenues.

• Contributions made to the EU Single Resolution Fund are also included here and recorded under the supranational level of government in the country tables.

74. Excluded from this sub-heading are:

a) taxes on services forming part of a general tax on goods and services (5110);

b) taxes on electricity, gas and energy (5121 as excises);

c) taxes on individual gains from gambling (1120 as taxes on capital gains of individuals and non-corporate enterprises) and lump-sum taxes on the transfer of private lotteries or on the permission to set up lotteries (5200);17

d) taxes on cheques and on the issue, transfer or redemption of securities (4400 as taxes on financial and capital transactions);

e) general taxes on turnover (5113).

5127 — Other taxes on international trade and transactions

75. This sub-heading covers revenue received by the government from the purchase and sale of foreign exchange at different rates. When the government exercises monopoly powers to extract a margin between the purchase and sales price of foreign exchange, other than to cover administrative costs, the revenue derived constitutes a compulsory levy exacted in indeterminate proportions from both purchaser and seller of foreign exchange. It is the common equivalent of an import duty and export duty levied in a single exchange rate system or of a tax on the sale or purchase of foreign exchange. Like the profits of fiscal monopolies and import or export monopolies transferred to government, it represents the exercise of monopoly powers for tax purposes and is included in tax revenues.

76. The sub-heading covers also the profits of export or import monopolies, which do not however exist in OECD countries, taxes on purchase or sale of foreign exchange, and any other taxes levied specifically on international trade or transactions.

5128 — Other taxes on specific goods and services

77. This item includes taxes on the extraction of minerals, fossil fuels and other exhaustible resources from deposits owned privately or by another government together with any other unallocable receipts from taxes on specific goods and services. Taxes on the extraction of exhaustible resources are usually a fixed amount per unit of quality or weight, but can be a percentage of value. The taxes are recorded when the resources are extracted. Payments from the extraction of exhaustible resources from deposits owned by the government unit receiving the payment are classified as rent.

5200 — Taxes on use of goods or on permission to use goods or perform activities

78. This sub-heading covers taxes which are levied in respect of the use of goods as distinct from taxes on the goods themselves. Unlike the latter taxes – reported under 5100 –, they are not assessed on the value of the goods but usually as fixed amounts. Taxes on permission to use goods or to perform activities are also included here, as are pollution taxes not based upon the value of particular goods. It is

sometimes difficult to distinguish between compulsory user charges and licence fees which are regarded as taxes and those which are excluded as non-tax revenues. The criteria which are employed are noted in §12–13

79. Although the sub-heading refers to the ‘use’ of goods, registration of ownership rather than use may be what generates liability to tax, so that the taxes of this heading may apply to the ownership of animals or goods rather than their use (e.g., race horses, dogs and motor vehicles) and may apply even to unusable goods (e.g., unusable motor vehicles or guns).

80. Borderline cases arise with:

a) taxes on the permission to perform business activities which are levied on a combined income, payroll or turnover base and, accordingly, are classified following the rules in §84;

b) taxes on the ownership or use of property of headings 4100, 4200 and 4600. The heading 4100 is confined to taxes on the ownership or tenancy of immovable property and – unlike the taxes of 5200 – they are related to the value of the property. The net wealth taxes and taxes on chattels of 4200 and 4600 respectively are confined to the ownership rather than the use of assets, apply to groups of assets rather than particular goods and again are related to the value of the assets,

5210 — Recurrent taxes on use of goods and on permission to use goods or perform activities

81. The principal characteristic of taxes classified here is that they are levied at regular intervals and that they are usually fixed amounts. The most important item in terms of revenue receipts is vehicle licence taxes. This sub-heading also covers taxes on permission to hunt, shoot, fish or to sell certain products and taxes on the ownership of dogs, broadcast licence fees and taxes on the performance of certain services, provided that they meet the criteria set out in §12–13. The sub-divisions of 5210 are:

• user taxes on motor vehicles paid by households (5211);

• taxes on motor vehicles paid by others (5212); and

• other recurrent taxes (5213). This sub-heading covers business and professional licences paid by enterprises in order to obtain a licence to carry on a particular kind of business or profession when the levies are on a recurring basis. Licences such as taxi and casino licences are included. Dog licences and recurrent general licences for hunting, shooting and fishing where the right to carry out these activities is not granted as part of a normal commercial transaction are also included under this heading Broadcast licence fees are included when the payer of the levy cannot opt out from making payments for public broadcast if they do not wish to watch or listen to public broadcast services (e.g. by declaring that one does not consume public broadcast services). Specific exemptions (for example, for elderly people) do not change the compulsory nature of the payment.

82. Excluded from sub-heading 5213 are:

a) licences where the right to carry out such activities is granted as part of a normal commercial transaction (e.g., the granting of the licence is accompanied by the right to use a specific area which is owned by government);

b) payments relating to the checks carried out by the government on the suitability and or safety of the business premises or equipment, or on the quality or standard of goods or services produced as a condition for granting such a licence. These payments are not unrequited and should be treated as payments for services rendered, unless the amounts charged for the licences are out of all proportion to the costs of the checks carried out by governments.

c) broadcast licence fees if users can opt out from paying broadcast licence fees in cases where they do not wish to consume these services without affecting their ability to consume private broadcast services.

5220 — Non-recurrent taxes on use of goods and on permission to use goods or perform activities

83. This section covers non-recurrent taxes levied on the use of goods or on permission to use goods or perform activities and taxes levied each time goods are used. It includes taxes levied on the emission or discharge into the environment of noxious gases, liquids or other harmful substances.

• Payments for tradable emission permits issued by governments under cap and trade schemes should be recorded here at the time the emissions occur. No revenue should be recorded for permits that governments issue free of charge. The accrual basis of recording means that there can be a timing difference between the cash being received by government for the permits and the time the emission occurs. In the national accounts, this timing gives rise to a financial liability for government during the period.

• Payments made for the collection and disposal of waste or noxious substances by public authorities should be excluded as they constitute a sale of services to enterprises.

84. Other taxes falling under heading 5200 that are not levied recurrently are also included here. Thus, once-and-for-all payments for permission to sell liquor or tobacco or to set up betting shops are included provided they meet the criteria set out in §12–13.

6000 — Other taxes

85. Taxes levied on a base, or bases, other than those described under headings 1000, 3000, 4000 and 5000, or on bases of which cannot be considered to be related to any one of these headings, are included here. Where taxes are levied on a multiple base and it is possible to estimate the receipts related to each base the separate amounts are included under the appropriate headings. If separate amounts cannot be estimated and it is known that most of the receipts are derived from one base, the whole of the receipts are classified according to that base. Otherwise, they are classified here. Other revenues included here are presumptive taxes not included elsewhere in the classification system, taxes on individuals in the form of a poll tax or capitation tax, stamp taxes not related to financial and capital transactions nor falling exclusively on a single category of transaction, expenditure taxes where personal deductions or exemptions are applied and unidentifiable tax receipts. A subdivision is made between taxes levied wholly or predominantly on business (6100) and those levied on others (6200).

A.6 Conciliation with National Accounts

86. This section of the tables provides a re-conciliation between the OECD calculation of total tax revenues and the total of all taxes and social contributions paid to general government as recorded in the country’s National Accounts. Where the country is a member of the European Union (EU), the comparison is between the OECD calculation of total tax revenues and the sum of tax revenues and social contributions recorded in the combination of the general government and the institutions of the EU sectors of the National Accounts.

A.7 Memorandum item on the financing of social security benefits

87. In view of the varying relationship between taxation and social security contributions and the cases referred to in §40 to §46, a memorandum item collects together all payments earmarked for social security-

type benefits, other than voluntary payments to the private sector. Data are presented as follows (refer Table 5.39 of the Report):

a) Taxes of 2000 series.

b) Taxes earmarked for social security benefits.

c) Voluntary contributions to the government.

d) Compulsory contributions to the private sector.

Guidance on the breakdown of (a) to (d) above is provided in §40 to §46

A.8 Memorandum item on identifiable taxes paid by government

88. Identifiable taxes actually paid by government are presented in a memorandum item classified by the main headings of the OECD classification of taxes. In the vast majority of countries, only social security contributions and payroll taxes paid by government can be identified. These are, however, usually the most important taxes paid by governments (refer to Table 5.40 of the Report).

A.9 Relation of OECD classification of taxes to national accounting systems

89. A system of national accounts (SNA) seeks to provide a coherent framework for recording and presenting the main flows relating respectively to production, consumption, accumulation and external transactions of a given economic area, usually a country or a major region within a country. Government revenues are an important part of the transactions recorded in SNA. The final version of the 2008 SNA was jointly published by five international organisations: the United Nations, the International Monetary Fund, the European Union, the Organisation for Economic Co-operation and Development, and the World Bank in August 2009. The System is a comprehensive, consistent and flexible set of macroeconomic accounts. It is designed for use in countries with market economies, whatever their stage of economic development, and also in countries in transition to market economies. The important parts of the SNA’s conceptual framework and its definitions of the various sectors of the economy have been reflected in the OECD’s classification of taxes.

90. There are, however, some differences between the OECD classification of taxes and SNA concepts that are listed below. They arise because the aim of the former is to provide the maximum disaggregation of statistical data on what are generally regarded as taxes by tax administrations.

a) OECD includes compulsory social security contributions paid to general government in total tax revenues. Imputed and voluntary contributions plus those paid to private funds are not treated as taxes (§9 and §11 above);

b) there are different points of view on whether or not some levies and fees are classified as taxes (§12 and §13 above);

c) OECD excludes imputed taxes or subsidies resulting from the operation of official multiple exchange rates or from the central bank paying a rate of interest on required reserves that is different from other market rates;

d) there are differences in the treatment of non-wastable tax credits

91. As noted in §1 and §2, headings 1000 to 6000 of the OECD list of taxes cover all unrequited payments to general government or to a supranational authority, other than compulsory loans and fines. Such unrequited payments including fines, but excluding compulsory loans can be obtained from adding together the following figures in the 2008 SNA

• value-added type taxes (D.211);

• taxes and duties on imports, excluding VAT (D.212);

• export taxes (D.213);

• taxes on products, excluding VAT, import and export taxes (D.214);

• other taxes on production (D.29);

• taxes on income (D.51);

• other current taxes (D.59);

• actual social contributions (D.611 and D613), excluding voluntary contributions and payments to employment-related schemes that are not social security schemes

• capital taxes (D.91).

A.10 The OECD classification of taxes and the International Monetary Fund (GFS) system

92. The coverage and valuation of tax revenues in the GFS system and the 2008 SNA are very similar. Therefore, the differences between the OECD classification and that of the 2008 SNA (see §90 above) also apply to the GFS. In addition, the International Monetary Fund subdivides the OECD 5000 heading into section IV (Domestic Taxes on Goods and Services) and section V (Taxes on International Trade and Transactions). This reflects the fact that while the latter usually yield insignificant amounts of revenue in OECD countries, this is not the case in many non-OECD countries.

A.11 Comparison of the OECD classification of taxes with other international classifications

93. The table below describes an item by item comparison of the OECD classification of taxes and the classifications used in the following:

a) System of National Accounts (2008 SNA);

b) European System of Accounts (2010 ESA);

c) IMF Government Finance Statistics Manual (GFSM2014).

94. These comparisons represent those that would be expected to apply in the majority of cases. However in practice some flexibility should be used in their application. This is because in particular cases, countries can adopt varying approaches to the classification of revenues in National Accounts.

4100 Recurrent taxes on immovable property

4200 Recurrent net wealth taxes 4210

and

4400 Taxes on financial and capital transactions D59-7.96d; D29-7.97e D214B, C 11414; 1161

4500 Other non-recurrent taxes on property D91-10.207a D91B 1135

4600 Other recurrent taxes on property D59-8.63c D59A 1136 5000 Taxes on goods and services

5100 Taxes on production, sale and transfer of goods and services

5110 General taxes on goods and services 5111 Value-added taxes D211-7.89 D211; D29G 11411 5112 Sales taxes

D2122-7.94a; D214-7.96a D21224; D214I 11412 5113 Turnover and other general taxes on goods and services D214-7.96a D214I 11413

5120 Taxes on specific goods and services 5121 Excises D2122-7.94b; D214-7.96b D21223; D214A, B, D 1142

5122 Profits of fiscal monopolies D214-7.96e D214J 1143

5123 Customs and other import duties D2121-7.93 D2121; D21221, 2 1151

5124 On exports D213-7.95a D214K 1152-4

5125 On investment goods

5126 On specific services D2122-7.94c; D2147.96c D21225; D214E, F, G, H; D29F 1144; 1156

5127 Other taxes on international trade and transactions D2122-7.94d D297.95b D29-7.97g D59-8.64d D21226; D29D; D59E 1153; 11556

5128 Other taxes on specific goods and services 1146

5130 Unallocable between 5110 and 5120

5200 Taxes on use of goods and on permission to use goods or perform activities

5210 Recurrent taxes on use of goods and on permission to use goods or perform activities

5211 Motor vehicle taxes households D59-8.64c D59D 11451

5212 Motor vehicles taxes others D29-7.97d D214D; D29B 11451

5213 Other recurrent taxes on use of goods and on permission to use goods or perform activities

D29-7.97c, d, f D598.64c D29B, E, F; D59D 11452

5220 Non-recurrent taxes on permission to use goods or perform activities 11452

5300 Unallocable as between 5100 and 5200 6000 Other taxes

6100 Payable solely by business 1161

6200 Payable by other than business, or unidentifiable D59-8.64a, b D59B, C 1162

A.12 Attribution of tax revenues by sub-sectors of general government

95. The OECD classification requires a breakdown of tax revenues by sub-sectors of government. The definition of each sub-sector and the criteria to be used to attribute tax revenues between these subsectors are set out below. They follow the guidance of the 2008 SNA and GFSM 2014.

Sub-sectors of general government to be identified

a) Central government

96. The central government sub-sector includes all governmental departments, offices, establishments and other bodies which are agencies or instruments of the central authority whose competence extends over the whole territory, with the exception of the administration of social security funds. Central government therefore has the authority to impose taxes on all resident and non-resident units engaged in economic activities within the country.

b) State, provincial or regional government

97. This sub-sector consists of intermediate units of government exercising a competence at a level below that of central government. It includes all such units operating independently of central government in a part of a country’s territory encompassing a number of smaller localities, with the exception of the administration of social security funds. In unitary countries, regional governments may be considered to have a separate existence where they have substantial autonomy to raise a significant proportion of their revenues from sources within their control and their officers are independent of external administrative control in the actual operation of the unit’s activities.

98. At present, federal countries comprise the majority of cases where revenues attributed to intermediate units of government are identified separately. Colombia and Spain are the only two unitary countries in this position. In the remaining unitary countries, regional revenues are included with those of local governments.

c) Local government

99. This sub-sector includes all other units of government exercising an independent competence in part of the territory of a country, with the exception of the administration of social security funds. It encompasses various urban and/or rural jurisdictions (e.g., local authorities, municipalities, cities, boroughs, districts).

d) Social security funds

100. Social security funds form a separate sub-sector of general government. The social security subsector is defined in the 2008 SNA by the following extracts from paragraphs 4.124 to 4.126 and 4.147:

“Social security schemes are social insurance schemes covering the community as a whole or large section of the community that are imposed and controlled by government units. The schemes cover a wide variety of programmes, providing benefits in cash or in kind for old age, invalidity or death, survivors, sickness and maternity, work injury, unemployment, family allowance, health care, etc. There is not necessarily a direct link between the amount of the contribution paid by an individual and the benefits he or she may receive.”

(Paragraph 4.124).

“When social security schemes are separately organised from the other activities of government units and hold their assets and liabilities separately from the latter and engage in financial transactions on their own account they qualify as institutional units that are described as social security funds.” (Paragraph 4.125).

“The amounts raised, and paid out, in social security contributions and benefits may be deliberately varied in order to achieve objectives of government policy that have no direct connection with the concept of

social security as a scheme to provide social benefits to members of the community. They may be raised or lowered in order to influence the level of aggregate demand in the economy, for example. Nevertheless, so long as they remain separately constituted funds, they must be treated as separate institutional units in the SNA. (Paragraph 4.126).

“The social security funds sub-sector (of general government) consists of the social security funds operating at all levels of government. Such funds are social insurance schemes covering the community as a whole or large section of the community that are imposed by government units.” (Paragraph 4.147).

101. This definition of social security funds is followed in the OECD classification with the two following exceptions which are excluded

• Schemes imposed by government and operated by bodies outside the general government sector, as defined in §3 of this manual; and

• Schemes to which all contributions are voluntary.

Supranational Authorities

102. This sub-sector covers the revenue-raising operations of supra-national authorities within a country. In practice, the only relevant supranational authority in the OECD area is that of the institutions of the European Union (EU). Tax revenues collected by member countries and paid to the EU are included in the Revenue Statistics at the supranational level of government. Income taxes and social security contributions collected by European Institutions and paid by European civil servants who are resident of EU member countries should not be included.

Criteria to be used for the attribution of tax revenues

103. When a government collects taxes and pays them over in whole or in part to other governments, it is necessary to determine whether the revenues should be considered to be those of the collecting government which it distributes to others as grants, or those of the beneficiary governments which the collecting government receives and passes on only as their agent. The criteria to be used in the attribution of revenues are set out in §104 to §107 which replicate paragraphs 3.70 to 3.73 from the 2008 SNA.

104. In general, a tax is attributed to the government unit that

a) exercises the authority to impose the tax (either as a principal or through the delegated authority of the principal),

b) has final discretion to set and vary the rate of the tax

105. Where an amount is collected by one government for and on behalf of another government, and the latter government has the authority to impose the tax, and set and vary its rate, then the former is acting as an agent for the latter and the tax is reassigned. Any amount retained by the collecting government as a collection charge should be treated as a payment for a service. Any other amount retained by the collecting government, such as under a tax-sharing arrangement, should be treated as a current grant. If the collecting government was delegated the authority to set and vary the rate, then the amount collected should be treated as tax revenue of this government.

106. Where different governments jointly and equally set the rate of a tax and jointly and equally decide on the distribution of the proceeds, with no individual government having ultimate overriding authority, then the tax revenues are attributed to each government according to its respective share of the proceeds. If an arrangement allows one government unit to exercise ultimate overriding authority, then all of the tax revenue is attributed to that unit.

107. There may also be the circumstance where a tax is imposed under the constitutional or other authority of one government, but other governments individually set the tax rate in their jurisdictions. The proceeds of the tax generated in each respective government’s jurisdiction are attributed as tax revenues of that government.

108. The levies paid by the member states of the EU take the form specific levies which include

a) custom duties and levies on agricultural goods (5123),

b) gross monetary compensation accounts (5123 if relating to imports and 5124 if relating to exports);

c) contributions to the Single Resolution Fund (5126); and

d) Steel, coal, sugar and milk levies (5128).

109. The custom duties collected by member states on behalf of the EU are recorded

• on a gross of collection fee basis;

• using figures adjusted so that duties are shown on a ‘final destination’ as opposed to a ‘country of first entry’ basis where such adjustments can be made. These adjustments concern in particular duties collected at important (sea) ports. Although the EU duties are collected by the authorities of the country of first entry, when possible these duties should be excluded from the revenue of the collecting country and be included in the revenue of the country of final destination

110. These are the specific EU levies that most clearly conform to the attribution criterion described in §102 above. Consequently, these amounts are footnoted as a memorandum item to the EU member state country tables (in Chapter 5) and are shown as supranational revenues against each of the tax headings identified in §108

1. All references to SNA are to the 2008 edition.

2. See section A.12 of this guide for a discussion of the concept of agency capacity.

3. It is usually possible to identify amounts of social security contributions and payroll taxes, but not other taxes paid by government.

4. If, however, a levy which is considered as non-tax revenue by most countries is regarded as a tax — or raises substantial revenue — in one or more countries, the amounts collected are footnoted at the end of the relevant country tables, even though the amounts are not included in total tax revenues.

5. Names, however, can frequently be misleading. For example, though a passport fee would normally be considered a non-tax revenue, if a supplementary levy on passports (as is the case in Portugal) were imposed in order to raise substantial amounts of revenue relative to the cost of providing the passport, the levy would be regarded as a tax under 5200.

6. A more detailed explanation of this distinction can be found in the special feature, ‘Current issues in reporting tax revenues’, in the 2001 edition of Revenue Statistics

7. Sometimes the terms ‘non-refundable’ and ‘refundable’ are used, but it may be considered illogical to talk of ‘refundable’ when nothing has been paid.

8. A different treatment, however, is accorded to non-wastable tax credits under imputation systems of corporate income tax (§37–39).

9. This is not strictly a true tax expenditure in the formal sense. Such tax expenditures require identification of a benchmark tax system for each country or, preferably, a common international benchmark. In practice it has not been possible to reach agreement on a common international benchmark.

10 Unless based on the profit made on a sale, in which case they would be classified as capital gains taxes under 1120 or 1220.

11 In some countries the same legislation applies to both individual and corporate enterprises for particular taxes on income. However, the receipts from such taxes are usually allocable between individuals and enterprises and can therefore be shown in the appropriate sub-heading.

12 For example, “… sufficiently self-contained and independent that they behave in the same way as corporations… (including) keeping a complete set of accounts” (2008 SNA, section 4.44).

13 In Canada — a country also referred to as having an imputation system — the (wastable) tax credit for the shareholder is in respect of domestic corporation tax deemed to have been paid whether or not a corporation tax liability has arisen. As there is no integral connection between the corporation tax liability and the credit given against income tax under such systems, these credits for dividends are treated, along with other tax credits, on the lines described in §26

14 This may also apply where a scheme for government employees existed prior to the introduction of a general social security scheme.

15 In the 2008 SNA, these are regarded as capital transfers and not as taxes (see section A.8).

16 This is the system by which the European Union adjusts for differences between the exchange rates used to determine prices under the Common Market Agricultural Policy and actual exchange rates. Payments under the system may relate to imports or exports and where these amounts are separately identifiable they are shown under the appropriate heading (5123 or 5124). In this Report, these amounts are shown gross (i.e. without deducting any subsidies paid out under the MCA system).

17 Transfers of profits of State lotteries are regarded as non-tax revenues (see also §68).

Revenue Statistics

HEALTH TAXES IN OECD COUNTRIES

1965-2023

Data on government sector receipts, and on taxes in particular, are basic inputs to most structural economic descriptions and economic analyses, and they are increasingly used in economic comparisons. This annual publication gives a conceptual framework to define which government receipts should be regarded as taxes. It presents a unique set of detailed and internationally comparable tax data in a common format for all OECD countries from 1965 onwards. This year’s edition includes a special feature on health taxes in OECD countries.

ALSO AVAILABLE ON LINE

The data in this publication are also available on line via www.oecd-ilibrary.org under the title OECD Tax Statistics (https://doi.org/10.1787/tax-data-en).