The taxation of extractive industries : mining

The taxation of the mining industry varies considerably from nation to nation. This paper reflects on the evolving use of various taxation approaches applied by governments to the mining sector. It includes a description of the principal tax types and investment tax incentives and briefly describes the main policy issues pertaining to mineral sector taxation. The author concludes that governments when devising mineral sector fiscal systems should carefully assess their fiscal options in a holistic approach that anticipates commodity price cycles, and that mining companies should anticipate fiscal system changes that reflect the evolution of the political economy in which they operate.