Published: 29 February 2008
Tax ratio declined in 2007
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 43.1 per cent in 2007. One year earlier the ratio was 0.4 percentage points higher. The total accrual of taxes and compulsory social security contributions went up by 6.2 per cent from the previous year and stood at EUR 77.1 billion. Nevertheless, the tax ratio declined clearly from the year before due to the strong growth of the GDP. The net tax ratio, i.e. the tax ratio less public current and capital transfers and subsidies paid to the private sector, went up by 0.4 percentage points to 22.2 per cent. This is because public transfers grew more slowly than GDP in 2007.
The tax revenue of the state and the municipalities increased by 6.0 and 7.7 per cent, respectively, from the previous year. The growth was mainly due to the strong growth in income tax paid by corporations and households which resulted from the favourable economic situation in 2007.
The collected amount of compulsory social security contributions was 5.2 per cent higher than in the year before. The amount of collected employment pension contributions grew by 5.7 per cent. The total accrual of compulsory social security contributions rose to EUR 21.3 billion.
Taxes and compulsory social security contributions by receiving sector
|- Income and property tax||13,973||12,098||12,676||11,806||12,319||12,749||12,888||14,384|
|- Value-added tax||10,869||11,118||11,680||12,455||12,949||13,658||14,418||14,978|
|Social security funds||14,486||15,473||15,640||15,721||16,317||17,392||18,762||19,756|
|Relative to GDP, %|
|- Income and property tax||10.6||8.6||8.8||8.1||8.1||8.1||7.7||8.0|
|- Value-added tax||8.2||7.9||8.1||8.5||8.5||8.7||8.6||8.4|
|Social security funds||11.0||11.1||10.9||10.8||10.7||11.1||11.2||11.1|
* = preliminary data
Source: Taxes and tax-like payments 2007. Statistics Finland
Inquiries: Mr Asko Kauppinen +358 9 1734 3216, email@example.com
Director in charge: Mr Ari Tyrkkö
Tables in databases
Last updated 29.2.2008
Official Statistics of Finland (OSF):
Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2007. Helsinki: Statistics Finland [referred: 28.4.2015].
Access method: http://www.stat.fi/til/vermak/2007/vermak_2007_2008-02-29_tie_001_en.html