Published: 2 March 2012
Tax ratio grew in 2011
The tax ratio was 42.9 per cent in 2011. The tax ratio describes the ratio of taxes and compulsory social security contributions to gross domestic product. The tax ratio increased by 0.6 per cent from the previous year. The accrual of taxes and compulsory social security contributions grew by 8.2 per cent in 2011. The total accrual amounted to EUR 82.2 billion. The amount of taxes accrued for the first time exceeded the level of 2008 prior to the economic downturn. These data are based on the preliminary national accounts data for 2011.
Taxes and compulsory social security contributions by sector, 2010–2011 1)
|Sector||Year||Million euro||Ratio to GDP, %|
|S13+S212 Total||2010||75 968||42,3|
|S1311 Central Government||2010||34 680||19,3|
|S1313 Local Government||2010||18 535||10,3|
|S1314 Social Security Funds||2010||22 601||12,6|
|S212 European Union||2010||152||0,1|
The brisk growth in households' income tax, corporation tax and value added tax particularly contributed to the increase in the tax accrual. The accrual of value added tax amounted to EUR 17.0 billion, or 11.5 per cent more than in 2010. The revenue from households' income tax rose by 7.4 per cent and was EUR 24.0 billion. The corporation tax revenue went up by 13 per cent. In addition, the revenue from energy taxes increased by 21.7 per cent and reached nearly EUR 3.9 billion. Changes made to the basis of taxation had an effect on the growth in energy taxes.
Most of the growth in tax accruals concerned taxes collected by the state. The tax revenue of the state totalled EUR 39.3 billion, which is 13.3 per cent more than one year previously. The tax accrual of municipalities grew clearly more slowly, by 3.4 per cent and was EUR 19.2 billion. Social security funds accrued compulsory social security contributions to the tune of EUR 23.5 billion, or 4.1 per cent more than one year earlier.
The net tax ratio grew to 18.4 per cent from 17.2 per cent in 2010. The net tax ratio is calculated by deducting from the tax ratio the subsidies, and current and capital transfers paid by general government to households and enterprises.
Source: National Accounts, Statistics Finland
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Tables in databases
- Appendix figure 1. Tax ratio, 1981 - 2011* (2.3.2012)
Official Statistics of Finland (OSF):
Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2011. Helsinki: Statistics Finland [referred: 28.8.2015].
Access method: http://www.stat.fi/til/vermak/2011/vermak_2011_2012-03-02_tie_001_en.html