Ireland Remains Europe's Lowest-Taxed State

by Jason Gorringe, Tax-News.com, London

27 October 2003

Ireland continues to hold its position as the most lightly taxed nation in the European Union with its overall tax burden falling for the third successive year, according to the latest OECD figures.

Ireland’s tax revenues now account for just 28% of the country’s GDP, way below the European average of 40%, which puts the country on a par with nations such as Japan and South Korea.

Meanwhile, the United Kingdom’s tax burden also fell last year and now stands at a figure of 35.9% of GDP. This makes it one of the less heavily taxed countries in Europe, with recent statistics showing that Britain’s income, goods, and service taxes compare favourably to other EU members. In contrast, Britain’s property taxes as a percentage of GDP continue to be higher than any other industrialised country at 4.1%. This compares to 3.1% in France, 1.6% in Ireland and 0.8% in Germany.

France remains one of the most highly taxed nations overall, with a tax burden of 44.2% of national income, despite the fact that tax revenues fell sharply in 2002.

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