Tax Incentives in Mining: Minimising risks to revenue
Many developing countries use tax incentives in the hope of attracting domestic and foreign investment. Their effectiveness, however, has often been disputed, not least in relation to the mining sector, which involves location-specific resources that cannot be moved. Nonetheless, governments may determine that they would still benefit from introducing tax incentives for the mining sector because of some specificities in their jurisdiction. In such cases, tax incentives need to be carefully designed to be effective.