IMF Working Papers

Cash Flow Analysis of Fiscal Regimes for Extractive Industries

By Thomas Benninger, Dan Devlin, Eduardo Camero Godinez, Nate Vernon-Lin

April 26, 2024

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Format: Chicago

Thomas Benninger, Dan Devlin, Eduardo Camero Godinez, and Nate Vernon-Lin. Cash Flow Analysis of Fiscal Regimes for Extractive Industries, (USA: International Monetary Fund, 2024) accessed November 12, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Mining and petroleum projects share characteristics distinguishing them from other sectors of the economy, which has led to the use of dedicated fiscal regimes for these projects. The IMF’s Fiscal Affairs Department uses fiscal modeling to evaluate extractive industry fiscal regimes for its member countries, and trains country officials on key modeling concepts. This paper outlines important preconditions needed for effective fiscal modeling, key evaluation metrics, and emphasizes the importance of transparent modeling practices. It then examines the modeling of commonly-used fiscal instruments and highligts where their economic impact differs, and how fiscal models can inform fiscal regime design.

Subject: Carbon tax, Commodities, Corporate income tax, Fiscal Analysis of Resource Industries (FARI), Oil, Production sharing, Revenue performance assessment, Taxes

Keywords: Carbon tax, Cash flow, Corporate income tax, D. resource rent tax, Economic rents, Extractive industries, Fiscal Analysis of Resource Industries (FARI), Fiscal modeling, Global, Investment analysis, Mining, Natural resource taxation, Oil, Petroleum project, Petroleum., Production sharing, Progressivity, Regime design

Publication Details

  • Pages:

    58

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2024/089

  • Stock No:

    WPIEA2024089

  • ISBN:

    9798400274329

  • ISSN:

    1018-5941

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