• 2024 (provisional) 38.5% | 2023 39.3% (OECD)

Non-tax government income

• Fees/charges; property income (interest/dividends/rent); transfers; capital transfers (Eurostat/ESA framework)

Supranational (EU) items (2024)

• Customs/import duties €3.1bn net transferred (≈€4.2bn gross collected)

• VAT-based ~€1.5bn; plastic-based €235m; GNI-based ~€3.6bn (Dutch annual government financial report)

Sub-national taxes

• Municipal: OZB (property), tourist/parking, waste/sewerage/fees

• Water authorities: water-related levies

• Local taxes = 3.3% of total taxation (2019)

https://en.ata.gov.al/2025/01/07/albanias-tax-revenue-estimated-at-405-6-billion-lek-in-2024-48-5-billion-lek-more-than-in-2023/

GDP - 2.36 trillion LEK in 2023

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AL

17.8%

Non tax revenue = 1% GDP in 2023

Value =

23.6 billion

Sources of non-tax revenue: grants, property income, sales of goods and services

No supranational taxes

Albania has sub-national taxes, such as property tax, small business tax, hotel tax, and local fees. They account for about 5% of total tax revenues nationwide. Most taxation is collected at the central government level.

Country’s tax to GDP ratio:

• 28.8% and it is the lowest in Eu because Eu average is 40.4% - 2024 statsitic.

Other income:

• State-owned enterprises (SOEs):

Revenue from government-owned companies, especially in the energy and transport sectors (around 8% contribution).

• EU funds and grants:

Money received from the European Union to finance public projects and development programmes.

• Natural resources:

Income from exploitation of oil, minerals, and natural gas.

• Dividends:

Earnings from government shareholdings in companies and other public enterprises; may also include income linked to debt and securities.

• Capital revenue:

Proceeds from the sale of state-owned assets and land.

• Privatisation proceeds:

Revenue raised by selling government-owned businesses to the private sector.

• Fees and licences:

Government income from administrative fees, licences, permits, and penalties/fines.

Supranational Taxes:

• Romania has contributed about €32.9 billion to the EU budget since joining in 2007, while receiving over €100 billion back in EU funds (net benefit ~€67.8 billion).

• For every €1 Romania pays into the EU budget, it receives about €3 in EU funding.

• In the Romanian national budget for 2025, transfers from the EU account for about 13.1% of total revenues.

Subnational Taxes:

• Romania has sub-national taxes, but they constitute a very small percentage of the overall national tax level

• Romania has sub national taxes, but it is highly fiscally centralised.

• Local tax revenues are very small accounting for roughly 4-8.7% of sub national revenue.

• Sub national government can set limited local taxes but there is no local personal income tax – PT is fully national.

• Despite low revenue, sub national governments account for

• Subnational tax revenue represented about 5.3% of public tax revenue (all levels combined) in 2020.

Summary:

SOEs profits, EU funds and grants, natural resources such as oil, natural gas, minerals and timber, dividends and interest, sale of state-owned assets and land, privatization of state-owned enterprises, fees and licences.

Romania has a low tax-to-GDP ratio (28.8%), well below the EU average, and relies partly on non-tax income like state-owned enterprises, EU funds, natural resources, dividends, asset sales, privatisation, and fees. It is a net beneficiary of EU finances, with EU transfers forming a notable share of revenue. The country is also highly fiscally centralised, with very limited sub-national tax powers and local taxes making up only a small share of total public revenue

The tax-to-GDP ratio in Morocco decreased by 1.4 percentage points from 29.9% in 2022 to 28.5% in 2023. - OECD, Africa Revenue Statistics 2025. 

b. Other government sources of income apart from taxes  

Nontax revenues amounted to 3%. 35.9% of non-tax revenues came because of sales of goods and services.  

Non- tax revenues are made up of rents and royalties, property income excluding rents and royalties, sales of goods and services, fines penalties and forfeits, and finally miscellaneous and unidentified revenues 

c. Any supranational taxes? If yes, which ones and how much is collected?  

None specifically mentioned, but part of African Union which aims to collect a 0.2% levy on eligible imports, called the Kigali Decision. 

d. Any sub-national taxes? If so, what percentage of the total national tax level do they constitute? 

It is entirely based on municipalities.

For example:

• Tax on undeveloped urban land

• Construction tax 

• Levies 

• Beverage 

• Tourist  

Singapore has virtually no sub-national taxes. Data shows 100% of tax revenue is attributed to the central government, so the sub-national share is basically 0%.

1) Net Investment Returns Contribution (NIRC) — the core non-tax pillar

NIRC is the mechanism that allows Singapore to use part of the long-term investment returns from national reserves to fund the annual budget. The Ministry of Finance explains that the Government can spend up to 50% of expected long-term returns under the NIRC framework, which is designed to support fiscal sustainability while safeguarding reserves. (mof.gov.sg)

2) Vehicle Quota Premiums (VQP) — policy-linked non-tax receipts

VQP is recorded as a non-tax revenue line item in the budget and is associated with Singapore’s vehicle quota system (commonly linked to COE-related payments). It is one of the more material non-tax components inside Operating Revenue. (mof.gov.sg)

3) Fees & Charges — administrative and service-related income

This category covers fees collected for government services and regulatory functions (for example, permits, licences, and administrative processing). MOF’s revenue analysis notes that the level of Fees & Charges can be influenced by one-off or irregular items such as proceeds from assets forfeited by criminals, alongside routine collections. (isomer-user-content.by.gov.sg)

4) Statutory Boards’ Contributions — transfers from public agencies

Some statutory boards contribute part of their revenues back to the central government, and these contributions are recorded as a distinct non-tax revenue item in the Operating Revenue framework. (mof.gov.sg)

5) Others — small residual category

The budget also includes an “Others” category to capture remaining smaller non-tax operating receipts not classified under the major headings. (mof.gov.sg)

World Bank and other economic data sources also report Singapore’s tax revenue at around 13.9% of GDP in 2023, showing a rise from about 11.8% in 2022.

Although Singapore is a member of Association of Southeast Asian Nations (ASEAN), ASEAN does not possess supranational taxing authority. It does not impose unified tax laws, set common tax rates, or directly collect taxes from individuals or corporations within its member states. As a result, all taxation in Singapore is administered and collected at the national level.

Weakness in the tax system

·       Current property and land taxes do not fully discourage land hoarding and inefficient land use, contributing to housing supply shortages.

Proposed new tax

·       Introduce a Land Value Tax (LVT) based on the unimproved value of land, potentially replacing parts of existing property-related taxes.

Expected impact

·       Encourages development of unused land, improves housing supply, and creates a fairer and more efficient tax system.

Key taxpayers affected

·       Landowners holding high-value or underused land; homeowners improving properties would not be penalised.

i. Income Taxes

• Personal Income Tax

• Corporate Income Tax

• Withholding Income Tax (e.g. tax on employment income, dividends, and interest)

⸻

ii. Capital Taxes

• Inheritance Tax

• Gift Tax

• Real Estate Acquisition Tax

• Fixed Asset Tax (a local tax, but classified as a capital tax)

⸻

iii. Consumption Taxes

• Consumption Tax (Value Added Tax – VAT, standard rate 10%)

• Alcohol Tax

• Tobacco Tax

• Gasoline and Energy Taxes

• Stamp Duty (tax on specific transactions and legal documents)

Direct Taxes vs Indirect Taxes

Tax Direct / Indirect

Personal Income Tax Direct tax

Corporate Income Tax. Direct tax

Inheritance and Gift Taxes Direct tax

Consumption Tax (VAT) Indirect tax

Alcohol, Tobacco and Fuel Taxes Indirect taxes

Stamp Duty Indirect tax

Direct taxes are levied directly on individuals or companies based on income or wealth, while indirect taxes are imposed on transactions and consumption and are ultimately borne by consumers.

Overall Summary

Japan’s tax system relies primarily on consumption tax and income taxes, with corporate income tax also playing a significant role. Capital taxes contribute a smaller share and are mainly focused on wealth transfers rather than annual net wealth. The combination of direct and indirect taxes provides Japan with a stable and diversified tax revenue base, particularly important given its ageing population and high public expenditure needs.

• Consumption taxes (36.9% of tax revenues)

• Labour taxes (44.44% of tax revenues)

• Capital taxes (19.1% of total revenues)

Income Tax: (Direct)

• Personal income tax – flat 10 % on individual income.

• Corporate Income Tax (CIT) – 16% on profits

• Social security contributions (often seen with income) – mandatory contributions by employees and employers

• Social security contributions (35%)

Capital taxes: (Direct)

19% includes:

• Taxes on capital gains (e.g., gains from property or securities — part of income tax regimes) (6.9%)

• Property taxes (recurrent taxes on land/buildings) (3.9%)

• Withholding taxes on dividends/interest/royalties (8.3%)

Consumption taxes: (Indirect)

• VAT (main one): Standard VAT rates is 21% and reduced is 11%. These replaced the older structure where the standard rate was 19% and there were reduced rates of 5% and 9%.

• Fuel excise duties: Romania levies excise duties on petrol and diesel based on volume.

• Total Consumption taxes are 36.9% out of which VAT accounts for 25.2% and 11.7% is fuel, excise, alcohol and tobacco.

• Alcohol duties

• Tobacco taxes

Taxes on income and profits of individuals 

Taxes on income and profits of corporations 

Social Security Contributions 

Capital taxes :

Capital Gains Tax 

Taxes on Property 

Consumption taxes  :

Taxes on Goods and services  

VAT 

Direct Taxes:

Taxes on income and profits of individuals 

Taxes on income and profits of corporations 

Social Security Contributions 

Capital Gains Tax 

Taxes on Property

Indirect Taxes:

Capital Gains Tax 

Taxes on Property

• VAT is the largest source of tax revenue in Morocco

• VAT is the primary indirect tax, applied to industrial, commercial, and handicraft transactions, as well as imports.

• Morocco's tax system is skewed towards consumption, with VAT, DCT (Domestic Consumption Taxes) and customs duties forming a large portion of the overall revenue, reflecting a reliance on taxing goods and services.

• While direct taxes (corporate and personal income) are growing, consumption tax (VAT) remains the most crucial tax base for the state's budget stability.

• b) A mixture of tax bases is common in developed economies because it balances the economic efficiency, revenue stability, fairness, and administrative feasibility.

• No single tax base can achieve all these objectives simultaneously, which is why governments rarely use all possible tax bases, opting instead for a tailored mix.

• Administrative and Compliance Costs: Implementing too many types of taxes increases the administrative burden on tax authorities and the complexity for taxpayers.

• Diminishing Returns/High Economic Cost:

o Some potential bases are too narrow or difficult to measure accurately.

o Cost of collecting tax on certain activities might exceed revenue generated.

• Potential for Severe Economic Distortion:

o Certain taxes can be highly harmful to growth if overused

o High taxes on capital or specific investments  may encourage capital flight.

• Political and Social Resistance: Taxing certain types of assets or activities (e.g. a comprehensive wealth tax on primary residences) can face high levels of political opposition, making implementation difficult.

• Exemptions for Policy Reasons: Governments often consciously exclude certain bases or items (e.g., food in VAT) to protect low-income households, promote investment, or simplify the system.

c) Developed countries rely on Income Tax due to:

• High Administrative Capacity – sophisticated, computerised tax administrations (PAYE systems and digital records) can track income and enforce compliance.

• Formal Economy – Most labour workers are employed formally (income is trackable and taxable through salaries and documented channels).

• Banking Infrastructure – Widespread use of the financial sector creates paper trails, allowing authorities to monitor transactions.

• Progressive Revenue Source

o Income Tax redistributes income and raises higher fractions of GDP.

o Income tax allows progressivity (higher earners pay more)

o Supports redistribution and welfare states

Developing countries rely on indirect taxes (VAT, tariffs) because they are easier to collect from informal economies and large, cash-based transactions.

d) Advantages of VAT

• Broad tax base

o Applies across most goods and services

• Self-enforcing mechanism

o Firms reclaim input VAT  incentive to keep records

• Revenue efficiency

o Raises large, stable revenue at relatively low rates

• Neutrality

o Taxes consumption rather than production

o Avoids cascading (tax on tax)

• Compatibility with global trade

o Zero-rating exports supports competitiveness.

e) Because national governments independently design tax systems to meet specific economic goals, balancing revenue needs with the desire to attract foreign investment.

Reasons for tax variations:

• Different governments adjust tax rates and have exemptions, leading to a range of CIT rates

• Countries differ on what constitutes taxable income

f)

• Low revenue generation – Cost of collection often close to revenue raised.

• Avoidance and evasion – Wealth is mobile and easily hidden

• Capital flight – Increased capital mobility allowed wealthy individuals relocate assets or residence to lower-tax jurisdictions, reducing the tax base.

• High Admin Costs & Valuation Difficulties – Taxing wealth required complex valuations of varied, often illiquid, assets (real estate, art, private businesses).

• Economic Distortions – Wealth taxes discouraged savings and investment, hindering economic growth.

• Liquidity Problems – Taxpayers with high-value assets but low income (e.g., retirees with valuable property) often struggled to pay the tax without selling assets.

g) Zero-Rating/Exemptions – Essential goods and services (children's clothes and shoes, food, and specific educational materials) are often zero-rated.

o Also benefits wealthy individuals

o Reduces total VAT yield  requires higher tax rates elsewhere

• Reduced Rates – Lower VAT rates are applied to specific goods to reduce the tax burden on everyday items.

o Businesses cannot recover the VAT cost they would’ve been paid

 They mark-up the price so customers pay more – no net benefit

o Leads to partial exemption calculations, high admin burdens and HMRC disputes

o Rules surrounding what is exempt, zero-rated or reduced rate is subjective

• Targeted Taxation – Higher taxes (e.g., higher fuel duty) are applied to luxury goods or non-essential goods, taxing higher disposable income more heavily.

o Reduce demand for luxury goods  decline in sales and/or production

o Leads to purchase of luxury goods in lower tax rate countries

o Classification on luxury goods is subjective  disputes and legal challenges