A Primer on Mineral Taxation

35 Pages Posted: 31 Jan 2006

Date Written: September 2001


The paper discusses options available to tax mineral extraction projects particularly in developing countries. A desirable government share of the economic rent generated from mineral extraction can be achieved through different tax and non-tax instruments. This gives some room to design a fiscal regime that will be attractive to investors while providing the government with a fair share of the economic rent. However, achieving this will require a careful assessment of the appropriate distribution of risk and reward between the investor and the government. Moreover, there is growing pressure on countries to provide increasingly lenient fiscal terms so as to remain competitive as global investment destinations.

Keywords: Taxation, mineral tax, mining and petroleum, mineral extraction, developing countries

JEL Classification: H25, L71, L72

Suggested Citation

Baunsgaard, Thomas, A Primer on Mineral Taxation (September 2001). IMF Working Paper No. 01/139, Available at SSRN: https://ssrn.com/abstract=879929

Thomas Baunsgaard (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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