Monday, 23 May, 2022

France champion of taxes according to the OECD

The tax burden reached a record level last year in the OECD area and France passed Denmark in terms of the weight of compulsory levies, according to a report by the Organization for Economic Co-operation and Development released on Wednesday. Last year, compulsory levies (taxes and social contributions) represented 34.2% of gross domestic product (GDP) on average in the 36 member countries of the OECD, against 34.0% in 2016.

This is the highest figure recorded since the Paris-based organization began compiling these tax data in 1965. According to the OECD report, France, with a tax rate reaching 46.2% of the GDP in 2017 (+0.7 point compared to 2016), took first place in Denmark, where the tax pressure rose to 46.0% last year (-0.2 point compared to 2016 ). Belgium follows, with a ratio of 44.6% in 2017 (+0.5 point).

These conclusions should not help to appease the challenge of the “yellow vests”, who plan to continue their movement despite the six-month suspension announced Tuesday by the government for three tax measures that were to come into force on January 1, including the increase in the carbon tax. At the other end of the ranking, Mexico has a tax burden representing 16.2% of GDP.

(With Reuters)