The monetary value of all the finished goods and services that are produced within a country in a stipulated period of time are referred to as the Gross Domestic Product (GDP). The GDP of a nation is mainly calculated on an annual basis; however, it may also be calculated on a quarterly basis. The Governments impose tax on the GDP, which provides them with a substantial income that they can spend on defense, healthcare, education, manufacturing, infrastructure and the other segments of the economy. Every nation imposes a tax of a certain percentage on the GDP and this percentage varies from country to country.
Timor-Leste is one of the most taxed countries in the world. The tax burden percentage of the GDP stands at a whopping 318.1 percent. North Korea, which has one of the most closed and centralized economies of the world, comes at the second place with 100 percent tax burden percentage of the GDP. The European nation of Denmark is classed as a high-income economy by the World Bank; however, it has one of the highest tax burden percentage of the GDP among the European nations. The nation occupies the third spot with 48.6 percent tax burden percentage of the GDP. Baring the African nation of Lesotho, which has a tax burden of 47.3 percent and occupies the fourth place, the rest are all European nations. The other nations in the top bracket include – France, Belgium, Finland, Sweden Italy, Austria, Norway, among others. Interestingly India, which is one of the fastest emerging economies, has a 16.7 tax burden percentage of the GDP.
|Name||Tax Burden % GDP|
|Bosnia and Herzegovina||37.6|
|Trinidad and Tobago||28.4|