Taxes and Revenue as percentage of GDP of world countries

Taxes and revenue as percentage of GDP of world countries

The monetary value of all the finished goods and services that are produced within a country in a stipulated period of time are referred to as the Gross Domestic Product (GDP). The GDP of a nation is mainly calculated on an annual basis; however, it may also be calculated on a quarterly basis. The Governments impose tax on the GDP, which provides them with a substantial income that they can spend on defense, healthcare, education, manufacturing, infrastructure and the other segments of the economy. Every nation imposes a tax of a certain percentage on the GDP and this percentage varies from country to country.

Timor-Leste is one of the most taxed countries in the world. The tax burden percentage of the GDP stands at a whopping 318.1 percent. North Korea, which has one of the most closed and centralized economies of the world, comes at the second place with 100 percent tax burden percentage of the GDP. The European nation of Denmark is classed as a high-income economy by the World Bank; however, it has one of the highest tax burden percentage of the GDP among the European nations. The nation occupies the third spot with 48.6 percent tax burden percentage of the GDP. Baring the African nation of Lesotho, which has a tax burden of 47.3 percent and occupies the fourth place, the rest are all European nations. The other nations in the top bracket include – France, Belgium, Finland, Sweden Italy, Austria, Norway, among others. Interestingly India, which is one of the fastest emerging economies, has a 16.7 tax burden percentage of the GDP.

Highest Taxed Nation in the World, 2016
Name Tax Burden % GDP
Timor-Leste 318.1
North Korea 100
Denmark 48.6
Lesotho 47.3
France 45
Belgium 44.6
Finland 44
Sweden 42.8
Italy 42.6
Austria 42.5
Norway 40.8
Luxembourg 39.3
Hungary 38.9
Bosnia and Herzegovina 37.6
Ukraine 37.6
The Netherlands 37.4
Cuba 37.3
Solomon Islands 36.9
Slovenia 36.8
Germany 36.7
Iceland 35.5
Russia 34.8
Czech Republic 34.1
Malta 34
Greece 33.5
Brazil 33.4
Portugal 33.4
Serbia 33.4
United Kingdom 32.9
Poland 32.7
Spain 32.6
Swaziland 32.6
Namibia 32.1
New Zealand 32.1
Macau 32
Cyprus 31.8
Estonia 31.8
Moldova 31.5
Botswana 31.3
Argentina 30.6
Canada 30.6
Israel 30.5
Croatia 30.4
Japan 30.3
Brunei Darussalam 30
Slovakia 29.6
Turkey 29.3
Mongolia 28.8
Trinidad and Tobago 28.4
Ireland 28.3