The SACU Revenue Sharing Formula was implemented for the first time in December 2004 to calculate 2005/06 revenue shares for Member States. In practice, Member States’ annual revenue shares are determined and approved by Council in December for distribution during the subsequent year.
The current Revenue Sharing Formula has three components; namely the Customs Component, Excise Component and the Development Component. The Customs share is allocated on the basis of each country’s share of intra-SACU imports. The Excise Component is allocated on the basis of each country’s share of Gross Domestic Product (GDP). The Development Component, which is fixed at 15 percent of total excise revenue, and is distributed according to the inverse of each country’s GDP per capita.
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