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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

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Last updated 1.3.2007