The energy crisis caused a decrease in the weight of taxes in the OECD

by time news

2023-12-06 14:34:20

The rise in energy prices in 2022 due to the Russian invasion of Ukraine, which led many governments to reduce certain taxes to mitigate its effects, translated into a reduction in the weight of taxation in the OECD, the third most important since the global financial crisis of 2008.

In its annual report on tax revenue published this Wednesday, the Organization for Economic Cooperation and Development (OECD) explains that taxes represented 34% of gross domestic product (GDP) last year, which means 0.15 percentage points. less than in 2021.

The share of taxes in GDP decreased in 21 of the member countries, and particularly sharply in Denmark (5.5 points to 41.9% due to the contraction in income tax revenue), the Netherlands (1 .2 points to 38%), Poland (1.5 points to 35.2%), Sweden (1.4 points to 41.3%), Switzerland (1.3 points to 27.2%) and Turkey (1 point at 20.8%).

In Spain – where the Executive reduced some taxes on energy – the decrease was greater than that of the OECD as a whole, by three tenths, but the quota remained above the average, at 37.5% of GDP.

Among the countries in which the burden of taxation increased, the largest increases were those of South Korea (2.2 percentage points, to 32%), Norway (1.9 points, to 44.3%), Chile ( 1.7 points, to 23.9%) and Greece (1.6 points, to 41%). In 2022, the members in which taxes had the greatest relative weight were France (46.1% of GDP), Norway (44.3%), Austria (43.1%), Italy (42.9%), Belgium (42.4%) and Denmark (41.9%).

Mexico and Colombia, the countries with the least taxation

At the other extreme, there were mainly Latin American countries. Mexico repeated as the country with the lowest taxation (16.9%, four tenths less than in 2021), followed by Colombia (19.7%). Turkey (20.8%), Ireland (20.9%), Chile (23.9%), Costa Rica (25.5%), Switzerland (27.2%) and the United States (27%) also did not reach 30%. .7%).

Looking at medium-term developments, taxation in the OECD grew from 32.9% to 34% in 2022, with increases in 30 of the members, particularly in South Korea (9.6 percentage points) and Greece (8.7 points).

Spain, among those who have increased taxes

In four other countries, these increases were also greater than 5 percentage points: Spain, Japan, Portugal and Slovakia. At the opposite extreme, the most marked drop was that of Ireland, with 6.8 percentage points to 20.9% in 2022 and in Turkey, with 3.9 points to 20.8%.

In its study, the OECD also analyzes the distribution of tax revenue by administration and, in this regard, Spain is clearly the country that has decentralized the most since the mid-1990s. Specifically, the Spanish autonomous administrations, which in 1995 They collected 5% of total tax revenue, in 2021 (the last year with comparable data available) they had increased that quota to 15.7%.

On average in the federal OECD countries, the federal states collected 17.7% in 2021, although the figures varied greatly between them, from only 2% in Austria or 4.1% in Mexico, to 39.6%. % in Canada, 24.7% in Germany or 24.5% in Switzerland, passing through 20.2% in the United States.

Spain does not appear on the list of federal countries, nor on the list of unitary countries, but in another category of “regional countries” that it shares only with Colombia, because both have “a very decentralized political structure, with significant autonomy of their territorial entities.” “.

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