Iran Tax-GDP Ratio Improving
Financial Tribune – Iran's average tax-to-GDP ratio has improved from 5.4% in the fiscal 2012-13 to 7.9% in 2016-17.
However, the ratio is still low compared to that of OECD countries (the Organization for Economic Cooperation and Development).
Tax revenues accounted for 34.3% of OECD countries’ GDP in 2016, the report by Tehran Chamber of Commerce, Industries, Mines and Agriculture announced.
Tax-to-GDP ratio for Turkey, Chile and Mexico stands at 25.5%, 20.4% and 17.2%, respectively. Denmark (45.9%), France (45.3%) and Belgium (44.2%) have the highest ratios.
The ratio refers to the tax collected compared to national gross domestic product. Some countries aim to increase the ratio by a certain percentage to address deficiencies in their budgets.
In provinces where tax revenue has gone up significantly compared to GDP, policymakers may decide to increase the percentage of tax revenue they apply toward foreign debt or other programs.
Date : Saturday 2 Desember 2017 / Subject : Economic News / Source : Financial Tribune