Cyprus recorded the largest increase in its tax-to-GDP ratio among EU member states in 2023 compared to 2022, according to data published by Eurostat on Thursday.

However, Cyprus’ ratio remained just below the EU average, which experienced a slight decrease over the same period.

In 2023, the combined taxes and net social contributions as a percentage of gross domestic product (GDP) across the EU stood at 40 per cent, down from 40.7 per cent in 2022. The Eurozone saw a similar decline, from 41.4 per cent in 2022 to 40.6 per cent in 2023.

Tax-to-GDP ratios rose in 11 EU countries, with Cyprus showing the largest increase, from 35.9 per cent in 2022 to 38.8 per cent in 2023. Luxembourg followed with a rise from 40.2 per cent to 42.8 per cent.

Meanwhile, 12 member states recorded decreases of more than 0.1 percentage points, with Greece dropping from 42.8 per cent to 40.7 per cent, and France from 47.6 per cent to 45.6 per cent.

In absolute terms, EU revenues from taxes and social contributions increased by €308 billion in 2023 compared to the previous year, reaching a total of €6.883 trillion.

France recorded the highest tax-to-GDP ratio among member states at 45.6 per cent, followed by Belgium at 44.8 per cent and Denmark at 44.1 per cent. The lowest ratios were noted in Ireland (22.7 per cent), Romania (27.0 per cent), and Malta (27.1 per cent).