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Published: 20 September 2019

Tax revenue grew by 2.1 per cent in 2018

The accrual of taxes and compulsory social security contributions grew by 2.1 per cent in 2018. The total accrual amounted to EUR 99.0 billion. The tax ratio fell from the previous year by 0.8 percentage points to 42.2 per cent. The tax ratio describes the ratio of taxes and compulsory social security contributions to gross domestic product. These data are based on the preliminary data on national accounts for 2018.

Taxes and compulsory social security contributions by sector, 2017–2018*

		2017	2018*
S13+S212 Total	Million euro	96 985	99 023
	Ratio to GDP, %	43	42,2
S1311 Central Government	Million euro	46 921	48 684
	Ratio to GDP, %	20,8	20,8
S1313 Local Government	Million euro	22 767	22 464
	Ratio to GDP, %	10,1	9,6
S1314 Social Security Funds	Million euro	27 000	27 645
	Ratio to GDP, %	12	11,8
S212 European Union	Million euro	297	230
	Ratio to GDP, %	0,1	0,1

* Preliminary data

In addition to the tax rate, we can examine the net tax ratio, which is calculated by deducting income transfers paid by general government from taxes received by general government. In 2018, the net tax ratio was 18.0 per cent of gross domestic product, down by 0.1 percentage points from the previous year.

The value added tax revenue grew by 4.7 per cent and was EUR 21.4 billion. The majority of other taxes on goods and services also increased in revenue compared to the previous year. The revenue from the tobacco tax, alcohol tax and central government's share of Oy Veikkaus Ab's profit, for example, increased significantly. The revenue from tobacco tax increased by 15.9 per cent and was EUR 1.1 billion. The revenue from alcohol tax increased by 10.1 per cent and was EUR 1.5 billion. The revenue from central government's share of Oy Veikkaus Ab's profit increased by 4.6 per cent and was EUR 1.1 billion. The revenue from energy taxes increased by 1.6 per cent and was EUR 4.4 billion.

The income tax paid by households rose by 1.0 per cent and totalled EUR 28.6 billion. The revenue from taxes on property decreased by 3.2 per cent compared with to previous year. The revenue from inheritance and gift tax was EUR 692 million which was 23.9 per cent less than the exceptionally high revenue in 2017. The revenue from transfer tax was EUR 844 million, an increase of 8.8 per cent from one year before.

EUR 55 million collected as contributions to the Single Resolution Fund from credit institutions was recorded as tax revenue for the institutions of the European Union.

In 2018, the tax revenue of the central government totalled EUR 48.7 billion. The growth from the year before amounted to 3.8 per cent. The tax revenue of local government totalled EUR 22.5 billion and decreased by 1.3 per cent from one year before. The revenue of compulsory social security contributions of social security funds grew by 2.4 per cent and it totalled EUR 27.6 billion. The proportion of taxes and compulsory social security contributions in consolidated total general government revenue was 80.7 per cent in 2018.

Source: National Accounts, Statistics Finland

Inquiries: Katariina Pentti 029 551 3003, financial.accounts@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Taxes by sector and tax category, 2017 - 2018 1) (20.9.2019)

Figures

• Appendix figure 1. Tax ratio, 1976 - 2018* (20.9.2019)
• Appendix figure 2. Tax ratio by tax collector sector 1976 - 2018* (20.9.2019)

Revisions in these statistics

• Revisions in these statistics (20.9.2019)

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Updated 20.9.2019