Compare and contrast the data presented in the graph below | IELTS Chart

Write a report for a university lecturer compare and contrast the data presented in the graph below.

You should write at least 150 words.

Main Forms of Taxation as Percentage of Total Tax Revenue in G7 Countries, 1995
 
The graph shows relative percentages of different types of taxation in the G7 countries in 1995.

For five of the countries shown, the main form of taxes was income and profits. This is especially true of Canada and the USA, where taxation on income and profits made up more than 45% of all taxes. In the UK, Japan and Italy, this form of taxation accounted for around 35% of total tax revenue.

On the other hand, in Germany and France, governments got more tax from social security, at around 42 and 38 percent respectively, as opposed to income and profit taxation, which was the second most important type of German tax and third in France.

The percentage of tax levied on goods and services was the second largest in the UK and Canada and the third greatest in the other five countries.

As can be clearly seen, in all the countries, income and profits, social security and goods and services were the major forms of taxation, whereas property tax was relatively unimportant with most countries gaining less than ten percent of taxes from this source. Payroll and other taxes were negligible.