According to the latest Eurostat figures, Malta has the third lowest tax to GDP ration in the EU at just 29.3%. The lowest tax to GDP ration is in Ireland with 22.4% and Romania with 28.8%. However, Malta had the highest increase in the EU of its tax to GDP ration in 2023 going up by 2.6% in 2024. Latvia’s tax to GDP ratio increased by 2.5% and Slovenia’s by 1.9%.
The highest tax to GDP ratio in the EU is in Denmark with 45.8%, followed by France with 45.3% and Belgium at 45.1%.
The increasing tax to GDP ration in Malta confirms the successful efforts by the Finance Minister to progressively collect even more tax revenue year on year to close the gap with the government’s recurrent expenditure. However this trend can become a negative risk to the economy if it increases without corresponding economic growth.
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