- VAT is the largest source of tax revenue in Asia-Pacific, making up 25.8 percent of total tax revenue in 2023.
- This percentage is higher than the OECD average of around 20 percent in 2022.
- Goods and services taxes are the largest revenue category, comprising 50 percent of total tax revenue in 2023.
- Personal income taxes account for 16.5 percent of total tax revenue, below the OECD average of 23 percent.
- Tax-to-GDP ratios increased in most of the 37 surveyed countries for the third year in a row, but growth slowed due to weaker economic activity in 2023.
- Both tax and nontax revenue rose as a share of GDP in most countries from 2022 to 2023.
- There is a continued reliance on indirect taxation like VAT, while direct taxation is less utilized compared to OECD peers.
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
