According to Statistics Finland’s revised data, the tax rate, or the ratio of taxes and compulsory social security contributions to gross domestic product was 43.1 per cent in 2009. In 2008, the ratio was also 43.1 per cent. The tax rate remained unchanged because tax revenue and gross domestic product in nominal terms decreased by about the same percentage. In 2009, the accruals of taxes and compulsory social security contributions totalled EUR 73.8 billion, which is 7.3 per cent less than in the year before. Since 1975 the tax accrual has declined from the previous year only six times and never by as much as now.
Taxes and compulsory social security contributions by sector, 2008–2009 1)
|Sector||Year||Million euro||Ratio to GDP, %|
|S13+S212 Total||2008||79 648||43,1|
|S1311 Central Government||2008||39 624||21,5|
|S1313 Local Government||2008||17 502||9,5|
|S1314 Social Security Funds||2008||22 316||12,1|
|S212 European Union||2008||206||0,1|
The accrual from households’ income tax amounted to EUR 22.5 billion in 2009, being nearly seven per cent less than in the year before. State income tax decreased by over 21 per cent, while the income tax revenue of municipalities increased by around two per cent. State income tax includes both taxes on earned income and taxes on capital income. The corporation tax revenue fell by around 46 per cent and was EUR 3.4 billion. Municipalities’ share of the corporation tax diminished by relatively less than the state’s, because the share of municipalities was temporarily raised in 2009. In addition, less value added tax was collected than in the year before. Its yield was EUR 15 billion, or around three per cent less than in 2008.
In 2009 the tax revenue of the state totalled EUR 34.1 billion, or 14 per cent less than one year previously. By contrast, the tax accrual of municipalities grew by around half a per cent, being EUR 17.6 billion. Social security funds accrued compulsory social security contributions to the tune of EUR 22 billion. Over 76 per cent of this were employment pension contributions.
The net tax ratio, which refers to the tax ratio less the subsidies, and current and capital transfers paid by general government to households and enterprises, stood at 18.0 per cent in 2009. In 2008 the net tax ratio was 21.7 per cent. The drop in the net tax ratio was due to growth in public transfers, especially paid social security benefits.
Source: National Accounts, Statistics Finland
Inquiries: Niina Suutarinen (09) 1734 3302
Director in charge: Ari Tyrkkö
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