User:Jlg484995/sandbox/gni
GNI in the United Kingdom
[edit]In 2013 total EU budget £107bn, of which United Kingdom total contribution £13.3bn, this was 12.4% of the total budget. The United Kingdom contribution included £12.1bn from GNI.
All EU member states contribute to the EU budget. 99% of the budget comes from what are termed 'Own Resources‘, with the remaining 1% coming from other sources of income. Own Resources are not allowed to exceed 1.23% of the EU's GNI. Other sources of income include, for example, taxes on EU staff salaries, contributions from non-EU countries to certain programmes and fines on companies for breaching competition laws.
Own resources are defined as "Revenue flowing automatically to the European Union budget, pursuant to the treaties and implementing legislation, without the need for any subsequent decision by national authorities", which means that each country automatically contributes money to the EU budget based on percentages of each Own Resource.
The United Kingdoms own resources-
- Traditional own resources - 14% - This is made up of Agricultural duties and sugar levies required by the Common Agricultural Policy (CAP) and Customs duties paid at the external frontier of the single market.
- Own resource from value added tax (VAT) - 12% - A standard percentage is levied on the harmonised VAT base of each EU country. The VAT base to be taxed is capped at 50% of GNI for each country. This rule is intended to prevent less prosperous countries having to pay a disproportionate amount (in such countries consumption – and so VAT – tend to account for a higher percentage of national income).
- Own resource based on gross national income (GNI)- 74% - A standard percentage is levied on the GNI of each EU country. It is used to balance revenue and expenditure, i.e. to fund the part of the budget not covered by other sources of income.
The United Kingdom is legally required to supply GNI totals to the European Union (EU) under the terms of Council Regulation '(EC, Euratom) No 1287/2003 of 15 July 2003 on the harmonisation of gross national income at market prices (GNI Regulation)’.
The Office for National Statistics supply GNI figures for the UK to Eurostat every year in the 'GNI Questionnaire and Quality Report'. This report has to be submitted to the Director General of Eurostat no later than the 22nd September each year.