Own income/Own resources
- (Photo: European Commission)
The EU is financed by, so-called, "own income". This consists of revenue from customs duties, agricultural levies, 1% of the VAT-base in each member country and a contribution from each country related to its GNP. The own resources ceiling is set at 1,27 % of the GNP of the enlarged EU.
The different types of income of the EU are called "own resources" since they legally belong to the EU.
Custom duties are collected by the Member States on behalf of the EU. The EU pays the Member States 25% of the sum collected to cover the cost of collection. The incomes are decided by the Member States in the Council. The EU Parliament has no say.
Future
The introduction of an EU tax is envisaged by unanimity in the Lisbon Treaty. By unanimity they can change for qualified majority. But, while the Commission strongly pushes for its introduction, an EU tax is fiercely resisted by many Member States. Instead the Commission plans to harmonise the tax base for company taxes as a first step.
Links
See also Budget.
