A study of mining taxation systems.

摘要

This study compares three mining taxation systems: royalty, profit tax and profitability tax, in a theoretical framework. It examines concepts and forms of taxation which are applicable to various nations, regions and/or commodities.;The study first reviews the economic characteristics of the mining industry and the principles of economic rent. Then, using a computerized model of a hypothetical project, the comparative impacts of the three tax systems are determined.;The following conclusions have been drawn from the study: (1) In general, taxes are a significant cost to a mining project. (2) A revenue taxation system (i.e. royalty) is easier to implement and enforce than either profit or profitability based systems. (3) The profit and profitability based systems are less discriminatory against low quality deposits and marginally profitable operations than a revenue taxation system.