Chapter 8 The taxation of natural resources

Abstract

This chapter discusses the possible effects that resource taxation may have on the timing and scale of resource development, emphasizing the potential conflicts between revenue-raising and economic efficiency. The chapter discusses the main issues that arise in the taxation and regulation of natural resources. Since natural resources are frequently owned or controlled by governments, as well as being subject to a variety of conventional taxes, the scope of the chapter must extend beyond conventional tax forms, since various royalties, rentals, bonus bids, direct government participation, and regulations are often used in combination with conventional taxes. Some attention must also be paid to overlapping jurisdictions, as natural resources are frequently the subject of taxation by more than one government, sometimes by different countries, since natural resource products are frequently traded goods. The chapter discusses fisheries, forests, mining, oil and natural gas, and hydro-electricity.