Tools & Resources

Tools and resources to assist government officials, parliamentarians and policy makers in the planning, preparation for, negotiation, monitoring, and implementation of large-scale investments

Tax Incentives in Mining: Minimising Risks to Revenue Go to resource

  • Date:  2018
  • Sector:  Extractive Industries Mining
  • Source:  IGF, OECD

This practice note looks at tax incentives in the mining sector. For many developing countries, receipts from mining are often a major source of revenue. The central task for policy-makers, therefore, is to design fiscal regimes for the mining industry that raise sufficient revenue, while providing adequate inducement to invest. Many times, governments have given tax incentives to mining investors that have turned out to be overly generous, forgoing significant tax revenues and sometimes resulting in conflict with investors. Preventing similar occurrences from happening again demands sector-specific guidance on the design and use of tax incentives.

The goal of this practice note is that governments of resource-rich countries are better equipped to identify and cost potential behavioural responses by mining investors to tax incentives.