The Future of Resource Taxation

Background

The mining sector is at a nexus of important global phenomena: the impact of climate change and the push to green the world economy, the development of new technologies affecting labour markets, and global momentum against inequalities and in favour of tax reforms. These trends raise the importance of mining for its mineral and financial outputs. In this context, governments will need new and innovative fiscal measures to protect the public’s economic interests during the next generation of resource extraction. As such, the IGF partnered with the African Tax Administration Forum in 2020 to launch an ambitious project: The Future of Resource Taxation.

The Future of Resource Taxation rethinks how developing countries benefit financially from their mineral resources. The project is a dedicated dialogue for governments, civil society, and industry to exchange ideas on improving the current mining taxation system and identify new, innovative fiscal options for resource-rich countries to maximize the returns from their mineral wealth.

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A handbook for policy-makers

The Future of Resource Taxation: 10 Policy Ideas to Mobilize Mining Revenues is a handbook for policy-makers that presents a menu of innovative fiscal measures to strengthen revenue collection in the mining sector. The publication was launched at the Global Conference on the Future of Resource Taxation in June 2023.

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The project was delivered in three phases:

  1. Researching fiscal policy to develop a deep understanding of its role in mining-sector investment—as well as how and why minerals are currently taxed—with an eye to unfolding changes in the sector and their effects on how financial benefits flow to governments.
  2. Crowdsourcing ideas and innovative approaches to the mining sector’s fiscal regime design and administration—from incremental reforms to more fundamental changes.
  3. Assessing the proposals, specifically looking at feasibility, impacts for investment, project development, and government revenues. Proposals that are innovative, forward-looking, responsive to global trends, and suitable for developing countries will be selected for further research.

How did we conduct this research?

Surveying Governments on Fiscal Objectives and Challenges Related to Mining Revenue Collection

We surveyed officials from 49 countries in Africa, Asia, and South America to identify fiscal objectives and revenue collection challenges related to the mining sector. Read our blog with survey findings and analysis.

Crowdsourcing Ideas From Non-Governmental Organizations, Civil Society Organizations, Academia, and Industry

In 2021, we invited people from various non-governmental institutions to submit innovative policy ideas—ranging from incremental reforms to fundamental changes—to help resource-rich developing countries maximize mining revenues.

Developing Innovative Fiscal Policies to Address the Concerns of Resource-Rich Developing Countries 

In 2022, we released 10 policy papers for public consultation. The papers outline a suite of innovative fiscal policies suited to resource-rich developing countries. The feedback gathered during this consultation period informed the final publication.

Funders

The IGF’s work on The Future of Resource Taxation was supported by:

  • Ford Foundation
  • Foreign, Commonwealth & Development Office of the United Kingdom
  • French Ministry of Europe and Foreign Affairs
  • Norwegian Agency for Development Cooperation
  • Swiss Agency for Development and Cooperation