Malta had the third biggest rise in the tax-to-GDP ratio last year, despite a cut in income tax.

Eurostat figures show that compared with 2013, the tax-to-GDP ratio increased in 2014 in a majority of Member States, with the largest rise being observed in Denmark (from 48.1% in 2013 to 50.8% in 2014), ahead of Cyprus (from 31.6% to 34.2%) and Malta (from 33.6% to 35.0%).

In contrast, decreases were recorded in eight Member States, notably in the Czech Republic (from 34.8% in 2013 to 34.1% in 2014) and the United Kingdom (from 34.9% to 34.4%).

Malta is still in the lower half of the list of total government revenue from taxes and social contributions as a percentage of GDP, just above the UK and Spain.

The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of GDP, stood at 40.0% in the European Union (EU) in 2014, compared with 39.9% in 2013. In the euro area, tax revenue accounted in 2014 for 41.5% of GDP, up from 41.2% in 2013.

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