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Most increase in tax revenues in Iceland

The revenue measure rose by 3.7 per cent to 42.4 of GDP in 2005, which is the highest increase out of 15 countries included in OECD’s annual report.

Economic expert Gunnar Árnason said this outcome was not surprising as the economic growth in Iceland was 7.5 per cent last year. He said salaries are higher than before and business is booming. Fréttabladid reports.

In most of the countries included in the report, tax revenue, as a percentage of gross domestic product, rose. The Organization for Economic Cooperation and Development concluded that this increase was mainly caused by vast economic growth.

A growing economy leads to higher tax payments from individuals and companies. Also, in some of the countries the taxation system has been improved.

After Iceland, the United States had the most increase in tax revenues, which rose by 1.3 points to 26.8 per cent.

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