The Revenue Statistics for 2014 published by the OECD on 10 December 2014 show that tax revenue collection in the member countries of the OECD has risen back towards the levels prevailing before the financial crisis. The composition of the tax burden in terms of specific taxes imposed still varies widely between countries. The average tax burden in 2013 represented by the ratio of tax revenues to GDP was 34.1%, a rise of 0.4% above the level of the burden in the previous year.

Of the 30 countries for which data was available to the OECD the tax burden rose in 21 countries and fell in 9. The largest increases in the tax burden were recorded in Portugal, Turkey, Slovakia, Denmark and Finland. The tax burden fell the most in Norway, Chile and New Zealand.

Around half the increase in the tax ratio in OECD countries is attributable to personal and corporate income taxes. These taxes are generally designed so that the tax collected rises at a faster rate than GDP in an economic recovery. In addition to these tax rises there have also been discretionary tax changes such as rises in tax rates and broadening of the tax base. The average tax ratio for local governments has also been rising since 2007.

Value added tax accounts for around 20% of the tax revenues in OECD countries. Generally consumption taxes and property taxes are considered by the OECD as a means to shift the tax burden away from the distortive taxes on labor and towards revenue sources that are friendlier to growth. Standard rates of VAT have greatly increased during the past five years and reached an average in OECD countries of 19.1% in January 2014.

Although many countries have recently increased their VAT rates, only a small number have taken measures to broaden the tax base. Most OECD countries impose reduced VAT rates and VAT exemptions for social purposes. In the view of the OECD, by limiting the number of reduced rates and exemptions and broadening the tax base the countries could increase tax collection while reducing compliance costs of collecting the tax. The savings could even allow them to reduce the standard rate of VAT.

The OECD looks at the distributional effects of the reduced VAT rates, finding that many of the reduced rates benefit higher income taxpayers more than lower income groups. Examples of such reduced rates are those relating to restaurant meals, hotel rooms, theater and cinema tickets or books. The social objectives would be better served by replacing these reduced rates with better targeted tax credits or benefits.