| | |
Homepage | login or create an account

NZ 13th Most Taxed Nation in OECD

Fuseworks Media
Fuseworks Media

Wellington, Oct 18 NZPA - New Zealand is the 13th most taxed
country of 30 in the OECD, a new survey by the Paris-based
organisation shows.

New Zealand tax gatherers hoover up 38 percent of GDP (gross
domestic product).

However, the Revenue Statistics report showed New Zealand's tax
burden fell over one percentage point between 2005 and 2006, one of
three countries in the group to experience a fall.

Sweden is the most taxed nation with tax collectors taking in 51
percent of GDP while Mexico at 20 percent is the least taxed.

Australia was the eighth lowest taxing country of the 30
industrialised nations.

The latest edition of the OECD's Revenue Statistics, which
reports on combined annual revenue collection at federal, state and
local government levels showed New Zealand's tax gathering increased
one percentage point as a proportion of GDP in the decade to 2005.

Australia's rose 2 percentage points.

In 2006, tax burdens as a proportion of GDP rose in 14 of the 26
countries for which provisional figures are available.

The average tax burden in the 30 countries reached 36.2 percent
of GDP in 2005, up from 35.5 percent in 2004 and level with the
historical high of 36.2 percent recorded in 2000.

The latest figures showed a slight increase in the proportion of
revenue collected through general consumption taxes, which take the
form of value added taxes (VAT, GST) throughout the OECD except in
the United States and some Canadian provinces.

These averaged out at the equivalent of 6.9 percent of GDP in
OECD countries in 2005, up from 6.8 percent in 2004 and 6.7 percent
in 2000 .

Over a 40 year time span, however, figures show no widespread
shift in the tax burden from direct to indirect taxes, contrary to
some public perceptions, because growth in VAT/GST revenues has been
mirrored by an even greater reduction in specific consumption taxes,
mainly excise duties.

About : money

Find the latest money news and 'how to' guides on Guide2Money.

Ask our researchers your personal finance questions.

Your Questions. Independent Answers.