Tax revenue grew by 3.3 per cent in 2016

The accrual of taxes and compulsory social security contributions grew by 3.3 per cent in 2016. The total accrual amounted to EUR 95.2 billion. The tax ratio grew from the previous year by 0.2 percentage points to 44.1 per cent. The tax ratio describes the ratio of taxes and compulsory social security contributions to gross domestic product. The tax ratio for 2016 went down by 0.2 percentage points mainly because GDP became revised from the preliminary data released in March. These data are based on the revised national accounts data for 2016.

Taxes and compulsory social security contributions by sector, 2015 - 2016*

		2015	2016
S13+S212 Total	Million euro	92 074	95 154
S13+S212 Total	Ratio to GDP, %	43,9	44,1
S1311 Central Government	Million euro	43 344	45 314
S1311 Central Government	Ratio to GDP, %	20,7	21,0
S1313 Local Government	Million euro	21 864	21 951
S1313 Local Government	Ratio to GDP, %	10,4	10,2
S1314 Social Security Funds	Million euro	26 624	27 613
S1314 Social Security Funds	Ratio to GDP, %	12,7	12,8
S212 European Union	Million euro	242	276
S212 European Union	Ratio to GDP, %	0,1	0,1

* Preliminary data

Other social security contributions than employment pension contributions paid by employers and the insured and grew particularly in 2016. The growth was especially due to increases in unemployment insurance contributions made in 2016. The accrual from other social security contributions paid by employers grew by 14.2 per cent and totalled EUR 3.8 billion. The revenue from other social security contributions paid by the insured increased by 17.7 per cent and totalled EUR 2.9 billion. The value added tax revenue grew by 3.8 per cent and was EUR 19.7 billion. The income tax paid by corporations rose by 5.5 per cent and totalled EUR 4.8 billion. The comparison takes into consideration that the church tax for corporations was removed in 2016 and it is from then on included in the revenue from the income tax paid by corporations. The income tax paid by households rose by 1.2 per cent and totalled EUR 28.0 billion. The revenue from energy taxes grew by 8.7 per cent and was EUR 4.4 billion. In addition, the accrual from the vehicle tax, tobacco tax, employment pension contributions paid by employers and the insured, vehicle and motorcycle tax, and capital transfer tax, for example, grew in 2016. The revenue from only a few taxes decreased. For instance, the accrual from death duty and gift tax contracted by 17.3 per cent to EUR 522 million.

EUR 112 million collected as contributions to the Resolution Fund from credit institutions was recorded as tax revenue for the institutions of the European Union. Now the 2015 contribution to the Resolution Fund have also been recorded as tax revenue for the institutions of the European Union while it previously was recorded as central government's tax revenue. The change is due to updated international guidelines.

In 2016, the tax revenue of the state totalled EUR 45.3 billion. The growth from the year before amounted to 4.5 per cent. The tax revenue of municipalities totalled EUR 22 billion and grew by 0.4 per cent from one year before. The accruals of compulsory social security contributions paid to social security funds increased by 3.7 per cent and totalled EUR 27.6 billion. The proportion of taxes and statutory social security contributions in consolidated total general government income was 81.7 per cent in 2016.

In 2016, the net tax ratio increased to 18.3 per cent from 17.6 per cent in the year before. The net tax ratio is calculated by deducting the subsidies, and current and capital transfers paid by general government to households and enterprises from the tax ratio.

Source: National Accounts, Statistics Finland

Inquiries: Atte Virtanen 029 551 3685, financial.accounts@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

Taxes by sector and tax category, 2015 - 2016* (13.7.2017)
Net tax ratio and public transfers, 1975 - 2016* (13.7.2017)

Figures

Appendix figure 1. Tax ratio in 1975 to 2016* (13.7.2017)
Appendix figure 2. Tax ratio by tax collector sector in 1975 to 2016* (13.7.2017)

Revisions in these statistics

Revisions in these statistics (13.7.2017)

Updated 13.7.2017

Referencing instructions:

Official Statistics of Finland (OSF): Taxes and tax-like payments [e-publication].
ISSN=2341-6998. 2016. Helsinki: Statistics Finland [referred: 18.4.2024].
Access method: http://www.stat.fi/til/vermak/2016/vermak_2016_2017-07-13_tie_001_en.html