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Overall EU Tax Burden Declined In 2002, Eurostat Reveals

by Ulrika Lomas, Tax-News.com, Brussels

05 July 2004

The Statistical Office of the European Communities, or Eurostat on Thursday issued a report entitled 'Structures of the taxation systems in the EU'.

Looking for the first time at figures from all 25 EU member states, the study revealed that in 2002, the overall tax burden in the EU25 stood at 40.4% of GDP (Gross Domestic Product), compared to a level of 41.1% the previous year. However, in all ten new member states, the tax-to-GDP ratio was lower in 2002 than the EU15 average (40.5%), ranging from 28.8% in Lithuania to 39.8% in Slovenia.

Of the older EU members, Sweden recorded the highest tax-to-GDP ratio (50.6% in 2002), whilst the lowest ratios were observed in Ireland (28.6%). However, the latter country also recorded the highest level of indirect taxation in 2002 at 43.7%, compared with Belgium, which reported a level of 29.7%.

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