After 25 years of gradual increase during which tax revenue from consumption taxes increased by about 4% of GDP in OECD countries, the proportion of general consumption taxes as a % of total taxation is now stabilised at around 18%. The introduction of VAT/GST as part of the tax reform process is to a large extent responsible for this, VAT/GST is now in place in 29 of 30 OECD countries.

Specific consumption taxes like excise duties also have an important role to play not only as a means of collecting revenue but also as an instrument to influence consumer behaviour and, increasingly, as part of wider attempts to protect the environment. The OECD developed a common database with the European Commission on environmentally related taxes.

The introduction of value added tax around the world continues apace but rapid globalisation and changes to the structure of commerce raise questions about the need to adjust VAT/GST systems to meet changing economic conditions. The development of more efficient tax administration, effective exchange of information, and the implications from the growth of electronic commerce are but 3 examples.

The diversity of consumption taxes across the OECD countries is presented in Consumption Tax Trends , which is published every two years. It provides details of the rates of tax and exemptions in each country for a wide variety of indirect taxes.

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