Taxes on income, profits and capital gains (% of revenue)

This financial metric represents the proportion of government revenue derived from levies imposed on individual earnings, corporate profits, and capital appreciation across various assets, including real estate and financial securities. By capturing both realized and unrealized capital gains, this indicator provides insight into the effectiveness of a tax system in generating income relative to economic activities. It reflects the fiscal health of a nation and the effectiveness of tax policy, shedding light on wealth distribution and investment incentives. Furthermore, excluding intragovernmental transactions ensures a clearer view of net revenue available for public expenditure. Ultimately, understanding this metric can guide policymakers in creating equitable tax systems that foster economic growth while meeting social needs. Source: