Ukraine to open NBU account for EU budget contributions, seeks delays on some provisions
An account to accumulate four types of payments constituting Ukraine's contribution to the EU budget will be opened at the National Bank of Ukraine (NBU) in the future, but Ukraine is asking to postpone certain contributions and the transition period for a levy on non-recycled plastic packaging.
This was announced by MP Roksolana Pidlasa (the Servant of the People faction), chair of the Verkhovna Rada Budget Committee.
"Ninety percent of the EU budget is funded by member-state contributions. Once Ukraine joins the EU, we will also make such payments. Under the current budget allocation system, Ukraine is expected to be a net recipient of EU funds (which is why many Central and Eastern European governments are, to put it mildly, not thrilled about our accession)," she explained, commenting on a joint screening with the European Commission of Ukrainian legislation related to financial and budgetary matters (Chapter 33).
Pidlasa said Ukraine's contribution to the EU budget would consist of customs duties (member states retain only 25% of customs revenues and transfer 75% to the EU budget), VAT (0.3%, but no more than half of gross national income), and a gross national income (GNI)-based payment to cover the gap between planned EU spending and revenues after customs and VAT – effectively 70% of the EU budget's income.
Another component would be a levy on non-recycled plastic packaging (€0.8 per kg of waste). However, Pidlasa noted, Ukraine is insisting on a transition period after joining the EU, as it currently lacks the legislation and infrastructure to account for such waste.
In addition, due to heavy defense spending and post-war recovery needs, Ukraine is asking to temporarily defer or reduce the EU budget contribution that comes from collected VAT and is calculated based on GNI.
"Chapter 33 screening is needed to determine how Ukraine statistically calculates its GNI, collects VAT and customs duties, and how efficient these processes are," Pidlasa added.
She also noted that Chapter 33 is among the final stages of the legislative screening process that precedes the opening of negotiation clusters. Ukraine expects to complete screening of all chapters by the end of September.