Tax revenues increased as a share of economic output across the Asia-Pacific region in 2024, although the latest OECD data reveal substantial differences in the ability of individual economies to raise government revenue.

The OECD’s Revenue Statistics in Asia and the Pacific 2026 reports that the average tax-to-GDP ratio across 38 participating Asia-Pacific economies reached 19.7% in 2024, up 0.3 percentage points from 2023. This marked the fourth consecutive annual increase in the regional average.

The tax-to-GDP ratio measures total tax revenue, including social security contributions paid to general government, as a proportion of a country’s GDP. It provides an indication of the amount of economic resources governments collect through taxation.

Japan and New Zealand Among the Highest

The OECD data show wide differences across the region. Japan recorded a tax-to-GDP ratio of 33.7%, although the figure shown for Japan is based on 2023 data because 2024 data were not available at the time of publication.

New Zealand followed with 32.9%, while Australia recorded 29.9%, also using 2023 data. Mongolia stood at 29.5%, followed by the Maldives at 26.3%, Korea at 25.3% and Georgia at 25.0%.

The OECD average was substantially higher at 34.1% in 2024, compared with 19.7% for the Asia-Pacific economies covered by the report. The Latin America and Caribbean average was 21.7%, while the latest African average stood at 16.1% for 2023.

Bangladesh Records the Lowest Ratio

At the opposite end of the regional comparison, Bangladesh recorded a tax-to-GDP ratio of just 6.7%, the lowest among the economies included in the OECD’s Asia-Pacific comparison.

Timor-Leste registered 10.0%, Indonesia 11.8%, Pakistan 12.3% and Cambodia 12.5%. Sri Lanka and Lao PDR both recorded 12.5% and 12.7%, respectively.

The wide gap highlights differences in tax systems, economic structures, government revenue capacity and the size of taxable activities across the region.

Regional Average Increased Despite Declines in Many Economies

The overall improvement did not mean that tax collection increased everywhere. The OECD reports that the tax-to-GDP ratio declined in 20 of the 36 economies for which 2024 data were available, while 16 recorded increases.

Several economies experienced particularly large changes. The Cook Islands recorded a 5.9-percentage-point increase, followed by Mongolia with 4.8 points, the Marshall Islands with 4.7 points, Fiji with 3.6 points and Sri Lanka with 2.5 points.

On the other hand, Niue experienced a 3.5-point decline, Nauru fell by 3.0 points and Kazakhstan recorded a 2.1-point reduction.

Economic Activity Supported Revenue Collection

According to the OECD, resilient economic activity, strong exports, investment and the continuing recovery of tourism in several Pacific economies helped support tax revenue mobilisation in 2024.

The report also points to changes in the composition of taxation. Since 2019, the regional average tax-to-GDP ratio has increased by 0.4 percentage points, with higher revenues from value-added taxes and personal income taxes each contributing around 0.6 percentage points of GDP on average over the period.

South Asia Shows Strong Improvement

South Asia recorded the largest increase among the Asia-Pacific sub-regions in 2024, with its average tax-to-GDP ratio rising by 1.2 percentage points. The OECD attributes much of the increase to stronger VAT revenue, alongside gains in corporate income tax and other taxes on goods and services.

East Asia also posted a relatively strong increase of 0.5 percentage points, supported by higher income-tax and social-security contributions. Southeast Asia and the Pacific experienced more moderate changes.

West and Central Asia was the only sub-region where the average ratio declined, falling by 0.3 percentage points, partly because of weaker commodity-related revenue in some economies.

What the Figures Mean for Governments

Tax revenue is a major source of funding for public services, including healthcare, education, infrastructure and social protection. Economies with relatively low tax-to-GDP ratios may face greater challenges in mobilising domestic resources for development, although the appropriate level varies according to each country’s economic structure and policy priorities.

The OECD’s latest figures therefore show a region moving toward stronger revenue mobilisation overall, but with major differences remaining between individual economies.

As governments seek to finance development while maintaining economic competitiveness, improving tax administration, widening the tax base and addressing hard-to-tax and informal economic activities are likely to remain important policy priorities across Asia and the Pacific.