What percentage of tax revenue in Asia-Pacific came from goods and services taxes in 2023?

In 2023, taxes on goods and services accounted for 50.2% of total tax revenue across Asia-Pacific economies, making it the leading source of taxation in the region.

How important is VAT in the Asia-Pacific region compared to other regions?

VAT accounts for 25.8% of total tax revenue in Asia-Pacific, which is higher than the OECD average of 20.8%, but slightly lower than the shares in Africa (27.0%) and Latin America and the Caribbean (28.5%).

Which countries in Asia-Pacific do not impose VAT?

Countries that do not impose VAT include Bhutan, Hong Kong, Malaysia, the Marshall Islands, Nauru, the Solomon Islands, and Tokelau.

What is the range of VAT contribution among Asia-Pacific countries?

VAT contributed between 23.2% and 57.1% of total tax revenue among countries where it is the primary tax source, with the Philippines at the low end and the Cook Islands at the high end.

What types of taxes dominate in countries that do not rely on VAT or GST?

In the seven countries that don’t rely primarily on VAT or GST, taxes such as excise duties and import duties account for a larger share of revenue, ranging from 25.2% in Kazakhstan to 69.9% in the Solomon Islands.

Why is VAT becoming more significant in the Asia-Pacific region?

As the region grows economically and becomes a global manufacturing and export hub, VAT is playing an increasingly central role in generating government revenue.

OECD: VAT Drives Asia-Pacific Revenue Growth

The Asia-Pacific region is the fastest-growing and most populous region in the world, with approximately 60% of the world's population residing there. In its latest revenue statistics report for the Asia-Pacific region, OECD broke down all the relevant taxation statistics, including those for VAT, GST, and other taxes on goods and services.

Key Tax Data From OECD's Report

As stated in the report, taxes on goods and services remained the principal source of taxation among the Asia-Pacific countries in 2023, accounting for 50.2% of total tax revenue. This is similar to the average level in Africa and the Latin America and Caribbean region, where these taxes on goods and services in 2022 account for 51.3% and 47.0%, respectively.

Notably, the Asia-Pacific region has a higher rate than the average among OECD countries, which was 31.5% in 2022. In its report, the OECD underlined that VAT was the most significant contributor to tax revenue in the Asia-Pacific region among major tax types, accounting for 25.8% of total tax revenue.

However, while the report shows that VAT plays an increasingly important role in many economies, countries such as Bhutan, Hong Kong, Malaysia, the Marshall Islands, Nauru, the Solomon Islands, and Tokelau do not impose VAT. Furthermore, the report shows that taxes on goods and services, such as VAT and GST, were the primary source of tax revenue in 24 countries, where 17 of them received a larger share of revenue from VAT, ranging from 23.2% in the Philippines to 57.1% in the Cook Islands.

According to the OECD, in the remaining seven countries from this region, taxes on goods and services, excluding VAT or GST, such as excises and import duties, accounted for a larger share of total tax revenue than VAT or GST. Revenue generated from these other types of taxes on goods and services in these seven countries ranged from 25.2% of total tax revenue in Kazakhstan to 69.9% in the Solomon Islands.

On average, VAT or GST accounted for a slightly larger share of total tax revenue, nearly 26%, compared to other taxes on goods and services, in 2023 for 37 economies in the Asia-Pacific region. This is below the average VAT shares of 27.0% in Africa and 28.5% in the Latin America and Caribbean region, but larger than the average VAT share in the OECD, which was 20.8% in 2022.

Conclusion

The OECD's statistical reports indicate that taxes on goods and services, including VAT, GST, excise duties, and import duties, are becoming increasingly significant for state budgets. With the further development of the region and its rise as a manufacturing and exporting hub, these numbers are expected to grow in the upcoming years, and taxes on goods and services are likely to play an even greater role.

Source: OECD - Revenue Statistics in Asia and the Pacific 2025