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Which of the following are not sources of the financing of EU’s budget:Group of answer choicesShare of agricultural leviesTax on financial transactionsShare of VAT incomeShare of Common External Tariff

Question

Which of the following are not sources of the financing of EU’s budget:Group of answer choicesShare of agricultural leviesTax on financial transactionsShare of VAT incomeShare of Common External Tariff

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Solution

The sources that are not part of the financing of the EU's budget are:

  • Tax on financial transactions: The EU does not have a direct tax on financial transactions. Instead, its budget is primarily financed through contributions from member states, which are based on their gross national income.

  • Share of agricultural levies: While the Common Agricultural Policy is a significant part of the EU budget, it is not financed through agricultural levies. Instead, it is funded through the EU's own resources, which include contributions from member states, customs duties on imports from outside the EU, and a percentage of VAT revenue.

The sources that are part of the financing of the EU's budget are:

  • Share of VAT income: A percentage of the VAT revenue from each member state is contributed to the EU budget.

  • Share of Common External Tariff: Customs duties on imports from outside the EU, also known as the Common External Tariff, are part of the EU's own resources and contribute to its budget.

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