Latvia has one of EU's lowest tax-to-GDP ratios

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Figures published by Eurostat October 31 show that in 2021, Latvia had the fourth-lowest tax-to-GDP ratio in the European Union. 

The tax-to-GDP ratio varied significantly between Member States in 2021, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in Denmark (48.8%), France (47.0%) and Belgium (46.0%). 

At the opposite end of the scale, Ireland (21.9%), Romania (27.3%), Bulgaria (30.7%) and Latvia (30.8%) registered the lowest ratios. Latvia was also one of only five EU countries to see a decrease in this metric from 2020 to 2021.

As a ratio of GDP, in 2021 tax revenue (including net social contributions) accounted for 41.7 % of GDP in the European Union (EU) and 42.2 % of GDP in the euro area (EA-19).

Changes in tax-to-GDP ratio, 2021/2020
Changes in tax-to-GDP ratio, 2021/2020

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