Non-metallic materials—minerals that are neither metals nor fuels—are present in every country and essential to building homes, roads, and infrastructure, as well as supporting industries from agriculture to energy. Over $217 billion worth of these minerals are produced annually in 66 countries; the global total being likely much higher.
In this context, how can governments design tax and royalty policies for non-metallic mining that achieve the right balance of mobilizing tax revenues; facilitating production, which may boost competitiveness and create jobs in downstream industries; and other objectives?
Much of the existing analysis of mining tax and royalties is focused on higher-value, metallic minerals and may not be appropriate for non-metallic minerals. Our report seeks to bridge this gap, proposing a framework for governments to design tax and royalty policies for non-metallic minerals. It focuses on the issues of royalties, export taxes, corporate income tax (especially transfer pricing challenges), tax incentives, artisanal mining taxation, and environmental taxation.
