Asia Pacific Region Leads Global VAT and GST Trends

VAT and GST dominate Asia-Pacific tax systems
The OECD’s 2025 report shows that taxes on goods and services made up 50.2% of total tax revenues in the Asia-Pacific region in 2023, surpassing the OECD average and matching trends in Africa and Latin America.
VAT is region’s top revenue contributor
VAT alone accounted for 25.8% of total tax revenues in Asia-Pacific. Countries like the Cook Islands, Niue, and the Maldives experienced notable increases due to economic growth, higher tax rates, and improved enforcement.
Efficiency of VAT systems varies widely
The VAT Revenue Ratio highlights large disparities in collection efficiency. Timor-Leste had the lowest score (0.10), while New Zealand led with 0.97 due to its simple, broad-based VAT system with minimal exemptions.
VAT remains vital for fiscal sustainability
Despite slowing economic growth in 2023, tax and non-tax revenues rose in many countries. The report stresses the need for VAT reform, improved compliance, and stronger administration to support long-term recovery and revenue resilience.