EU: EC proposal for system of own resources
If adopted, the proposed amendments to the EU own resource system would apply as of January 1, 2028.
The European Commission on July 16, 2025, published a proposal for a Council Decision on the system of own resources of the European Union.
In line with the 2021 and 2023 proposal for a first and second basket of EU own resources, the Commission continues to suggest that national contributions to the EU budget should be based on the carbon border adjustment mechanism (CBAM) and emissions trading system (ETS). In addition, the EC proposed three additional new own resources in the form of:
- Corporate resource for Europe: Annual lump sum contribution to the EU budget with reference to corporate turnover. The contribution would be levied at the level of EU companies and EU-based permanent establishment of non-EU companies with an annual turnover of at least €100 million (subject to certain exemptions). The contribution amount would be determined as per a “bracket system,” with higher net turnovers resulting in larger contributions.
- E-waste own resource: Contribution to the EU budget with reference to the weight of electrical and electronic equipment in each member state that is not collected annually. The contribution would amount to EUR 2 per kilogram of uncollected e-waste.
- Tobacco excise duty own resource: Contribution to the EU budget of 15% of the revenue generated from applying the minimum excise duty rate on the amounts of manufactured tobacco and tobacco related products released for consumption.
The own resource decision has to be unanimously agreed by member states in the Council. If adopted, the proposed amendments to the EU own resource system would apply as of January 1, 2028, while the CORE levy would apply as of January 1 of the first calendar year following the year in which the Council Decision becomes effective.
Read a July 2025 report prepared by the KPMG’s EU Tax Centre