The country has been in last place in the ranking of 30 nations since 2011, when the study was created; research relates tax burden to the population’s quality of life
Brazil occupies last place in a ranking that calculates the return on taxes on investments for the population. The study, prepared by IBPT (Brazilian Institute of Planning and Taxation), considers the 30 countries with the highest tax burdens in the world. Here’s the complete of the material (PDF – 266 kB).
To make the calculation, the institute considers the HDI (Human Development Index) of each country, measured from 0 to 1. The closer to 1, the better the education, health and life expectancy scenario of a nation. In addition to the index, the research calculates the share of the tax burden in the country’s GDP (Gross Domestic Product). Based on these 2 factors, the Index of Return of Well-Being to Society, or IRBES, is established.
In the case of Brazil, the tax burden corresponds to 32.39% of GDP. This is the 24th highest tax rate among the countries considered in the survey. The HDI, in turn, stands at 0.760, the lowest in the group. All numbers considered refer to the year 2022.
With this, the country achieves an IRBES of 142.35 and occupies 30th place in the ranking, a position it has been in since the study was launched in 2011. By way of comparison, 1st place has an IRBES of 171.72 .
“Although we have a high tax burden, worthy of developed countries, such as the United Kingdom, France and Germany, the national HDI reflects very precarious human development”the research states.
Brazil appears below other Latin American countries in the ranking. Argentina, located in 22nd place, has a higher tax rate (34.40%), but an HDI of 0.849, which represents a greater return on taxes on investments for the population. Even so, the neighboring country fell 9 positions compared to the 2023 survey, when it was in 13th place.
Ireland takes 1st place in the ranking, for the 6th time in a row. The nation has a tax rate of 20.90% of GDP and an HDI of 0.950. Switzerland and the United States complete the top 3 in the survey.
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