The Organisation for Economic Cooperation and Development (OECD) today reported that tax revenues collected in advanced economies have continued to increase from last year’s all-time high, with taxes on labor and consumption representing an increasing share of total tax revenues.
As noted in the OECD release, the 2016 edition of the OECD’s annual revenue statistics publication shows that the OECD average tax-to-GDP ratio rose slightly in 2015, to 34.3% (compared to 34.2% in 2014). An increase in tax-to-GDP levels was seen in 25 of the 32 OECD countries that provided preliminary data in 2015, while tax-to-GDP levels fell in the remaining seven countries.
The OECD further reported that value added tax (VAT) revenues are the largest source of consumption tax revenues in the OECD, and have now reached an all-time high of 6.8% of GDP and 20.1% of total tax revenue on average in 2014 (up from 6.6% of GDP and 19.8% of total tax revenue in 2012). Revenues from VAT rose as a percentage of GDP in 22 of the 34 OECD countries that operate a VAT and fell, only slightly, in five countries compared to 2012.
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