Almost all Member States introduced measures for the deferral of tax and social contribution payments. The decrease in government total revenue, was both due to automatic stabiliser effects of tax revenue (meaning that in an economic downturn, tax revenue decreases even without active policy measures) as well as due to active tax cutting measures in order to mitigate the economic downturn caused by the COVID-19 pandemic. In 2020 tax revenue was highly impacted by the COVID-19 pandemic as well as the active policy measures to mitigate the effects of the pandemic. From 2019 to 2020, EU tax revenue decreased by EUR 215 billion and euro area tax revenue decreased by EUR 206 billion. In absolute terms, 2020 was the first year since 2009 that the tax revenue decreased compared to the previous year in both EU and the euro area. ![]() This is due to a decrease in the numerator (nominal GDP) as a result of the COVID-19 pandemic. ![]() Compared with 2019, an increase in the ratio is observed for the EU as well as in the euro area. As a ratio of GDP, in 2020 tax revenue (including net social contributions) accounted for 41.3 % of GDP in the European Union ( EU) and 41.8 % of GDP in the euro area (EA-19).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |