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dc.titleTaxation of the Mining Industry in Latin America and the Caribbean: Analysis and Policy
dc.contributor.authorBazel, Philip
dc.contributor.authorMintz, Jack M.
dc.contributor.authorReyes-Tagle, Gerardo
dc.contributor.orgunitFiscal Management Division
dc.coverageChile
dc.coveragePeru
dc.coverageMexico
dc.coverageLatin America and the Caribbean
dc.date.available2023-06-20T00:06:00
dc.date.issue2023-06-20T00:06:00
dc.description.abstractLittle is known about mining taxation in Latin America and the Caribbean (LAC), although it is both particularly complex and has large effects on incentives for investments in mining activities. This paper reviews the types and consequences of mining taxes that are applied in the region and their implications for investment. Most countries assess royalties based on the value of production, which are consistent with royalties applied globally. However, miners confront additional taxes such that tax regimes, in the aggregate, inefficiently discourage investment, including income taxes, non-refundable sales taxes on capital purchases, capital taxes, gross receipt taxes, and real estate transfer taxes. Several reforms emerge from the analysis. The most important is for LAC countries to consider profit-based regimes--similar to Chile, Mexico, and Peru--supplemented by a minimum royalty based on the value of production. Company tax reforms should also be considered with the aim to tax mining similarly to other sectors of the economy to improve the allocation of capital.
dc.format.extent74
dc.identifier.doihttp://dx.doi.org/10.18235/0004957
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Taxation-of-the-Mining-Industry-in-Latin-America-and-the-Caribbean-Analysis-and-Policy.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectTax Rate
dc.subjectEnergy and Mining
dc.subjectTaxation
dc.subjectInvestment
dc.subjectMining Industry
dc.subjectRating
dc.subjectIncome Tax
dc.subjectMining Royalty
dc.subjectRevenue
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeL72 - Mining, Extraction, and Refining: Other Nonrenewable Resources
dc.subject.jelcodeQ38 - Government Policy
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.keywordsmining industry;mining taxation;royalties;government take;marginal effective tax and royalty rate;government mining policy;Latin America and Caribbean
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02698
idb.operationRG-T3666
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