Published: 1 March 2007

Tax ratio was declining in 2006

According to Statistics Finland's preliminary data, the ratio of the taxes and compulsory social security contributions collected by general government to gross domestic product was 43.5 per cent in 2006. One year earlier, the ratio was 0.5 percentage points higher. The total accrual of taxes and compulsory social security contributions went up by 5.6 per cent from the previous year and was EUR 73.0 billion. Nevertheless, the tax ratio declined due to the strongly grown GDP. The net tax ratio, i.e. the tax ratio less public current and capital transfers and subsidies received by the private sector, went up by 0.3 percentage points to 21.8 per cent. This is because the public transfers received by the private sector grew more slowly than GDP in 2006.

The tax revenue of the state increased by 3.6 per cent from the previous year. Especially the revenue from value added tax showed growth, going up by 6.6 per cent to EUR 14.6 billion. Municipalities' tax revenue grew faster than the state's, or by 6.8 per cent. The total combined income tax revenue of the state and municipalities went up by 4.5 per cent.

The collected amount of compulsory social security contributions was 8.2 per cent higher than in the year before. The amount of collected employment pension contributions grew by 6.5 per cent. The total accrual of compulsory social security contributions rose to EUR 20.4 billion.

Taxes and compulsory social security contributions by receiving sector

  1999 2000 2001 2002 2003 2004 2005* 2006*
EUR million
Total 56,159 62,418 62,334 64,186 64,187 66,191 69,120 72,959
State 29,577 34,310 32,928 34,667 34,824 35,966 37,244 38,563
- Income and property tax 10,036 13,973 12,098 12,676 11,806 12,319 12,749 12,888
- Value-added tax 10,137 10,869 11,118 11,680 12,455 12,949 13,658 14,566
Municipalities 12,193 13,484 13,807 13,773 13,538 13,778 14,330 15,298
Social security funds 14,246 14,486 15,473 15,640 15,721 16,317 17,392 18,922
European Union 142 139 127 106 104 130 154 176
  Relative to GDP, %
Total 45,8 47,2 44,6 44,6 44,0 43,4 44,0 43,5
State 24.1 25.9 23.5 24.1 23.9 23.6 23.7 23.0
- Income and property tax 8.2 10.6 8.6 8.8 8.1 8.1 8.1 7.7
- Value-added tax 8.3 8.2 7.9 8.1 8.5 8.5 8.7 8.7
Municipalities 9.9 10.2 9.9 9.6 9.3 9.0 9.1 9.1
Social security funds 11.6 11.0 11.1 10.9 10.8 10.7 11.1 11.3
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 2006. Statistics Finland

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

Director in charge: Mr Ari Tyrkkö

Links: Press release related to this statistical release

Tables

Tables in databases


Last updated 1.3.2007

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2006. Helsinki: Statistics Finland [referred: 23.11.2017].
Access method: http://www.stat.fi/til/vermak/2006/vermak_2006_2007-03-01_tie_001_en.html

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