Mining Taxation: An Application to Mali

May 1, 2010

Preview Citation

Format: Chicago

Saji Thomas. Mining Taxation: An Application to Mali, (USA: International Monetary Fund, 2010) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Mali’s gold sector is an enclave with weak forward and backward linkages with the rest of the economy. Given the predominance of the fiscal transmission channel, it is important that the design of the mineral tax regime gives the state a fair share of the benefits. Using optimal control theory, this paper estimates that the optimal royalty tax in Mali is about 3.5 percent. By reducing the royalty rate from 6 percent to 3 percent, Mali’s mining code broadly ensures that the risk is shared between the state and mining companies, provides sufficient incentives to attract new exploration, and is comparable to the fiscal regimes in other sub-Saharan African countries in its mix of tax instruments and tax structure.

Subject: Commodities, Economic sectors, Environment, Gold, Mining sector, Non-renewable resources, Oil, gas and mining taxes, Royalty tax, Taxes

Keywords: After-tax earnings, Extraction plan, Extractive firm, Gas and mining taxes, Gold, Mali, Mining, Mining firm, Mining sector, Non-renewable resources, Oil, Profit tax, Royalty tax, Sub-Saharan Africa, Tax rate, Taxation, WP

Publication Details

Pages:

23
Volume:

---
DOI:

---
Issue:

---
Series:

Working Paper No. 2010/126
Stock No:

WPIEA2010126
ISBN:

9781455200856
ISSN:

1018-5941

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Working Papers