Author Description

The taxation of natural resources extraction industries has a major influence on their economic viability, on the efficiency of allocation of capital, and the net benefits to society generated by the existence of the resources. This study investigates how the existing system of income taxation and provincial mining taxation impinges upon the incentives to invest in mining at all stages from initial exploration to final depletion and sale, using the concept of an effective tax rate. The study also investigates what sort of reforms would improve the system, satisfying government revenue requirements while at the same time removing the adverse effects of the existing system on the industry.