In this world, nothing can be said to be certain, except death and taxes. Or so the saying goes.
The UK is all too familiar with tax hikes, with the new Labour government announcing £40billion in tax rises last October.
As hard-up as Britons might feel, it only takes a minute to look elsewhere to feel a sense of relief.
The African nation of Ivory Coast, or Côte d’Ivoire, plays host to some of the world’s highest tax brackets, despite a need to attract business to its shores.
Renowned for its status as the world’s largest exporter of cocoa, Ivory Coast has implemented a progressive tax system where residents are taxed on their worldwide income.
Ranging from 0% to 60%, the high tax rate is part of the government’s strategy to boost public revenue and support economic development.
Over the past decade, Ivory Coast has experienced significant economic growth, with real GDP growth averaging 8.2% between 2012 and 2019.
Even during the COVID-19 pandemic, the country maintained a growth rate of 2% in 2020 and returned to its high-growth trajectory in 2021.
Though such a high tax bracket may suggest economic stagnancy, Ivory Coast maintains a robust economy.
This is largely driven by its agricultural exports and a growing energy sector. The government’s ambitious plans to transform the economy include moving beyond merely exporting raw materials to becoming a key player in the global value chain.
However, the high individual tax rate has raised concerns about its potential impact on the cost of living and disposable income for citizens.
As the government continues to implement its economic strategies, balancing tax policies with the well-being of its population will be crucial for sustainable development.
In close second to Ivory Coast comes Finland, which has the highest tax anywhere in Europe.
Its top rate of income tax sits at 44%, though additional taxes such as local municipal taxes of up to 10.8% and a church tax of up to 2.25%, means that this base figure can, in fact, be higher.
Finland also has one of the highest capital gains taxes, and unlike other countries where short-term visitors are usually exempt from full taxation, Finland considers anyone who has stayed longer than six months a full-fledged tax-paying resident.
