Published: 1 March 2006

Tax ratio up slightly in 2005

According to preliminary data calculated by Statistics Finland, the ratio of the taxes and compulsory social security contributions collected by general government to gross domestic product was 44.5 per cent in 2005. One year earlier, the ratio was 0.2 percentage points lower. The total accrual of taxes and compulsory social security contributions went up by 4.1 per cent from the previous year and was EUR 69.0 billion. The net tax ratio, i.e. the tax ratio less current and capital transfers and subsidies received by the private sector, went up by 0.5 percentage points to 22.1 per cent.

The tax revenue of the state increased by 3.4 per cent from the previous year. Strengthened consumption and investment demand put revenue from value-added tax up by 5.1 per cent to EUR 13.7 billion. Municipalities' tax revenue grew faster than the state's, or by 4.0 per cent. Several revisions were made to the basis for collecting income tax in 2005, e.g. the system of avoir fiscal was abandoned in the taxation of dividends, and the corporate income tax and capital gains tax rates were lowered. The total combined tax revenue of the state and municipalities went up by 3.7 per cent.

The collected amount of compulsory social security contributions was 5.3 per cent higher than in the year before. Their total accrual went up to EUR 18.8 billion.

Finnish National Accounts time series for 1975-2004 will become revised on 31 March 2006. At the same time, the time series of these Statistics on Taxes and Tax-like Payments will also be revised for the 1975-2004 period. After this, the data on 2005 published here will no longer be fully comparable with those on earlier years. Calculations concerning 2005 made in accordance with the time series revision will be published on 13 July 2006.

Taxes and compulsory social security contributions by receiving sector

  1998 1999 2000 2001 2002 2003 2004* 2005*
EUR million
Total 53,950 56,159 62,418 62,334 64,186 64,187 66,345 69,047
State 28,488 29,577 34,310 32,928 34,667 34,824 36,038 37,277
- Income and property tax 9,752 10,036 13,973 12,098 12,676 11,806 12,319 12,749
- Value-added tax 9,700 10,137 10,869 11,118 11,680 12,455 13,021 13,689
Municipalities 11,767 12,193 13,484 13,807 13,773 13,538 13,778 14,328
Social security funds 13,542 14,246 14,486 15,473 15,640 15,721 16,399 17,292
European Union 153 142 139 127 106 104 130 150
  Relative to GDP, %
Total 46.0 46.4 47.7 45.7 45.6 44.6 44.3 44.5
State 24.3 24.5 26.2 24.1 24.6 24.2 24.1 24.0
- Income and property tax 8.3 8.3 10.7 8.9 9.0 8.2 8.2 8.2
- Value-added tax 8.3 8.4 8.3 8.1 8.3 8.7 8.7 8.8
Municipalities 10.0 10.1 10.3 10.1 9.8 9.4 9.2 9.2
Social security funds 11.5 11.8 11.1 11.3 11.1 10.9 11.0 11.1
European Union 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

* = Preliminary data.

Source: Taxes and tax-like payments 2005. Statistics Finland

Inquiries: Mr Mika Sainio +358 9 1734 2686, skt.95@stat.fi

Director in charge: Mr Ari Tyrkkö

Tables

Tables in databases


Last updated 1.3.2006

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2005. Helsinki: Statistics Finland [referred: 26.7.2014].
Access method: http://www.stat.fi/til/vermak/2005/vermak_2005_2006-03-01_tie_001_en.html.

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