European taxes on the rise

(BRUSSELS) - Taxes rose across Europe in 2011 but the burden varied significantly from one country to another, an annual European Union report said on Monday.

The overall tax-to-GDP ratio -- the sum of taxes and social contributions in percentage of gross domestic product -- in the European Union rose to 38.8 percent in 2011 against 38.3 percent in 2010 and 38.4 percent in 2009.

But the tax burden ranged from 26 percent in Lithuania, at the bottom of the scale, to the highest in Denmark with 47.7 percent.

Taxes on labour remained the largest source of tax revenue in the 27-nation bloc, accounting for almost half of all receipts, followed by taxes on consumption which accounted for around one third and taxes on capital at around a fifth.

Tax on labour ranged from 22.7 percent in Malta or 24.6 percent in Bulgaria to 42.8 percent in Belgium, 42.3 in Italy and 40.8 in Austria.

The average tax rate on consumption rose from 19.7 percent in 2010 to 20.1 percent in 2011 and was lowest in Spain at 14 percent and highest in Finland at 26.4 percent.

Tax rates on capital for countries in which data was available were down compared with 2010 in 10 EU states and up in nine, ranging from 5.5 percent in Lithuania to 44.4 percent in France.

Taxation trends in the European Union 2013