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Government revenue from customs in HIC countries
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This knowledge is free to use under CC-BY License 4.0!
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This file is part of Gapminder's fact-base. Here's the link to the public share folder
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Updated by Ola R. & DIane I on October 21, 2021
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On average, 1.8% of government revenue comes from customs in High income countries.
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 The data is used to respond to a question asking "The governments of high-income countries get how much of their revenue from customs and import duties?"a. Around 2%, b. Around 12% c. Around 22%
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Gapmindr has estimated that on average the import taxes, share of government revenue is around 2% [1.8 -2.3 %] for all high income countries with some variations accross countries:
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0.01-0.1: Latvia, Romania
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0.1-0.3%: Cyprus, Iceland and Norway
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0.5-0.8%: Chile, Israel, Japan, San Marino ,Switzerland
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1-2%: South Korea Kuwait Mauritius, Saudi Arabia, United states
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2-4%: Australia, Bahrain, New Zealand,Seychelles,Uruguay, Panama
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5-10%: Barbados , Trinidad and Tobago
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10-20% :Bahamas, Palau, St. Kitts and Nevis
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It is also important to note that for almost 25 high income countries, no percentage of the total government revenue comes from import taxes.
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Gapminder calculated the numbers 1.8% and 2.3.% , based on revenue data published by UNU WIDER and the World Bank.
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The following are the steps we went to arrive at the estimate of the import taxes, share of government revenue in HIC countries:
i)We first calculated the Customs and other import duties % of GDP as the product of two indicators from World Bank :Tax Revenue % of GDP and customs and other import duties % of tax revenue. Thus,
(Tax Revenue / GDP) X (Customs & Import Duties / Tax Revenue) = Customs & Import Duties / GDP (A)
ii)The second figure (B) came from UNU WIDER data for Trade Taxes (% of GDP) . Trade taxes, including export taxes but they are very small that we simply ignored them.
iii)Based on both figures, we created the two outer boundaries (C) as min-max( A,B)
iv)We then calculated the government revenue as the product of one indicator of UNUWIDER total revenue (%GDP) and GDP, expressed in PPP2017( constant international dollars).
(total revenue/GDP)*GDP=gvt revenue. (D)
v)The min-max of customs revenue was calculated as the product of (C) and GDP. (E)
vi) we then calculated the customs, share of government revenue as E/D .
vii) Finally we estimate the average customs , share of government revenue
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Sources
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Trade taxes, total taxes & Total revenues by UNU WIDER
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 Word Development indictors of the World Bank
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