The Hidden Cost of Tax Incentives in Mining

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TPED issued comments after the release by IGF/OECD of the Draft on the Hidden Cost of Tax Incentives in Mining (

This document has been prepared under a programme of cooperation between the OECD and the Inter-Governmental Forum on Mining, Metals, Minerals, and Sustainable Development (IGF), as part of a wider effort to address some of the challenges developing countries are facing in raising revenue from their mining sectors. It complements action by the Platform for Collaboration on Tax to produce toolkits on top-priority tax issues facing developing countries.
In line with TPED’s focus, our comments focus on the economic aspects of the Draft distinguished from, but in support of, the tax and legal considerations, which have been duly taken into account.

TPED first provided some general comments on the Draft., and then expanded on two aspects of the document:

  1. Reasons not to grant income tax holidays;
  2. Management fees.

Authors of the paper from TPED are: Laurence Elong Mbassi, Giammarco Cottani, and Sébastien Gonnet.