The Solomon Islands has been ranked 42nd globally in terms of tax-to-GDP ratio, according to the latest international data comparing how much countries collect in taxes relative to the size of their economies.
According to the World Population Review Global Tax-to-GDP by Country 2026, Solomon Islands recorded a tax-to-GDP ratio of 20.67 percent in 2022, placing it mid-range among more than 120 countries surveyed worldwide.
Topping the global ranking is Nauru with the highest tax-to-GDP ratio at 44.4 percent (2020 data), meaning the government collects taxes equivalent to nearly half of the country’s total economic output.
Second on the list is Norway at 31.27 percent, followed by Lesotho (30.44 percent), Denmark (30.42 percent), and New Zealand (29.93 percent).
Other countries recording high tax-to-GDP ratios include Greece (27.64 percent), Sweden (27.6 percent), United Kingdom (27.32 percent), Namibia (27.17 percent), and Austria (26.19 percent).
In the Pacific region, Samoa recorded 25.02 percent, Tonga 20.79 percent, Kiribati 18.31 percent, Vanuatu 15.88 percent, and Papua New Guinea 14.77 percent.
Major economies such as United States recorded 10.22 percent, Germany 11.01 percent, Japan 11.4 percent, and China 7.7 percent.
At the lower end of the scale, countries such as United Arab Emirates recorded 0.58 percent, Iraq 1.34 percent, and Kuwait 1.5 percent.
Economic analysts note that tax-to-GDP ratios can vary significantly depending on the size of a country’s economy and the level of taxation imposed to fund public services such as healthcare, education and infrastructure.
While Solomon Islands is not among the highest-taxed nations globally, its 42nd placing reflects a moderate tax collection level relative to the size of its economy when compared to other Pacific and international counterparts.
By ULUTAH GINA
Solomon Star, Gizo
