Resource rent tax

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A resource rent tax is a tax on the rents gained on the exploitation of a resource. [1] [2] [3] It can cover both renewable and non-renewable resources. It is classically understood to be a tax on the surplus value generated by resource exploitation beyond the necessary costs of production (which includes rewards to capital). [1] An investor enjoys relief from taxation until a certain rate of return has been achieved, at which point profits are shared with the host government. [1]

Resource rent taxes are particularly prevalent in mining and petroleum industries. [1] Australia's Minerals Resource Rent Tax covers rents in the mining industry. [4] Norway introduced a resource rent tax on aquaculture (i.e., salmon and trout farming) in 2023, [5] and resource rent tax on onshore wind energy effective January 1, 2024. [6] [7] [8] In Iceland, a resource rent tax has been placed on fishing industry profits. [9] In Switzerland, there is a resource rent tax on hydropower. [10]

Some other countries that apply resource rent tax can be listed as follows: [11]

See also

References

  1. 1 2 3 4 "Resource rent taxes", The Taxation of Petroleum and Minerals, International Monetary Fund, 2010, ISBN   978-0-415-78138-1
  2. ↑ Lund, Diderik (2009). "Rent Taxation for Nonrenewable Resources" . Annual Review of Resource Economics. 1 (1): 287–308. doi:10.1146/annurev.resource.050708.144216. hdl: 10419/47338 . ISSN   1941-1340.
  3. ↑ Boadway, Robin; Keen, Michael (2015), "Rent taxes and royalties in designing fiscal regimes for nonrenewable resources", Handbook on the Economics of Natural Resources, Edward Elgar Publishing, pp. 97–139, doi:10.4337/9780857937568.00011, hdl: 10419/89624 , ISBN   978-0-85793-756-8
  4. ↑ Garnaut, Ross (2010). "Principles and Practice of Resource Rent Taxation" . Australian Economic Review. 43 (4): 347–356. doi:10.1111/j.1467-8462.2010.00616.x. ISSN   0004-9018.
  5. ↑ "Norway government lowers fish farm resource tax proposal to 35%". Reuters. March 28, 2023.
  6. ↑ "How Wind Power and Indigenous Rights Clashed in Norway". Bloomberg News. 2024-03-07.
  7. ↑ "Norway Delays Plan for Onshore Wind Tax After Industry Outcry". Bloomberg News. 2023-05-11.
  8. ↑ Helge Neraal, Fredrik Verling, Ingrid Elise Ruud, Johan Eikrem (April 2024). "New wind in the sails for onshore wind power in Norway?". Insights. DLA Piper.{{cite news}}: CS1 maint: multiple names: authors list (link)
  9. ↑ Gunnlaugsson, Stefan B.; Kristofersson, Dadi; Agnarsson, Sveinn (2018). "Fishing for a fee: Resource rent taxation in Iceland's fisheries" . Ocean & Coastal Management. 163: 141–150. doi:10.1016/j.ocecoaman.2018.06.001. ISSN   0964-5691.
  10. ↑ Banfi, Silvia; Filippini, Massimo (2010). "Resource rent taxation and benchmarking—A new perspective for the Swiss hydropower sector". Energy Policy. 38 (5): 2302–2308. doi:10.1016/j.enpol.2009.12.017. ISSN   0301-4215.
  11. ↑ Fund, International Monetary, "8 Resource rent taxes", The Taxation of Petroleum and Minerals, Routledge, ISBN   978-0-415-78138-1 , retrieved 2024-12-30
  12. ↑ "Government revenues from oil and gas production September 2024". GOV.UK. Retrieved 2024-12-30.
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