Steepest rise in tax revenue in EU

In 2004 Malta registered the highest tax revenue increase in the European Union, as a percentage of GDP, according to Eurostat, the EU's statistical arm.

This was in keeping with the trend of the past few years, when Malta's tax revenue compared to its gross domestic product shot up.

Compared to 2003, tax revenue in 2004 as a proportion of GDP rose in 14 member states, fell in 10 and remained stable in another.

The steepest increase in the tax-to-GDP ratio was recorded in Malta, up from 34.5 per cent of GDP in 2003 to 36.7 per cent the following year.

In 2000, the government's revenue from taxes was more than six percentage points lower than in 2004, standing at just 30.1 per cent.

Nonetheless, the burden on the Maltese is still less taxing than the EU average.

In 2004, the average EU 25 tax revenue as a percentage of GDP was 40.7 per cent. Swedes pay more tax than anyone, at 51.2 per cent, followed by the Danes with 49.9 per cent. On the other end of the scale is Lithuania, standing at just 28.7 per cent in 2004.

In contrast to Malta, in 2004 tax revenue in the EU 25 between 1995 and 2004 fell to its lowest level in terms of GDP.

In the new member states, taxes are still generally lower than in 'old' Europe.