Cash Flow Analysis of Fiscal Regimes for Extractive Industries

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

No 2024/089, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Natural resource taxation; extractive industries; progressivity; economic rents; fiscal modeling; investment analysis; mining; petroleum.; D. resource rent tax; cash flow; petroleum project; regime design; Corporate income tax; Production sharing; Fiscal Analysis of Resource Industries (FARI); Oil; Carbon tax; Global (search for similar items in EconPapers)
Pages: 58
Date: 2024-04-26
New Economics Papers: this item is included in nep-eur and nep-ppm
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