The first Global Conference on the Future of Resource Taxation sought to support resource-rich developing countries in translating their rich natural heritage into tangible benefits for their citizens. The Conference explored new policy options and ways to capitalize on the growing demand for critical minerals for the energy transition.

At the heart of discussions was the question of how resource-rich countries can “leverage fiscal policies to achieve their economic, social, and environmental goals in a balanced way,” the Earth Negotiations Bulletin (ENB) summary report of the meeting notes.

According to ENB, Conference participants frequently emphasized “the loss of up to USD 730 million annually in corporate income tax in Sub-Saharan Africa, which is due to profit shifting and other tax avoidance strategies in the mining sector.” Participants acknowledged that while mineral-rich countries share many challenges, there are opportunities for strengthening collaboration. They reflected on case studies from the Democratic Republic of the Congo (DRC), Mozambique, Uganda, Mongolia, Ecuador, Brazil, Papa New Guinea (PNG), the Philippines, Angola, Guinea, Liberia, and Zambia, among other countries. “All underscored the intense effort needed to undertake fiscal reform and build fit-for-purpose institutions to implement and continually monitor resource taxation policies,” ENB writes.

Structured around a series of expert panels and “fireside chats,” the discussions explored:

• The state of play of mining taxation, including success stories, ongoing challenges, new opportunities, and risks for governments of resource-rich countries;
• Key opportunities and risks for resource-rich countries arising from the low-carbon transition, particularly the demand for critical minerals;
• Demand projections for critical minerals, and regional and country-level strategies, as well as an industry perspective on the potential mining boom;
• The impact that a changing landscape of international tax and global tax cooperation will have on resource-rich developing countries;
• New taxing rights, the global minimum tax, and the proposal for a UN convention on taxation;
• Emerging regional approaches to international and domestic tax issues; and
• The mining industry’s role in limiting global carbon emissions through innovative fiscal policies in support of a balanced and just decarbonization agenda.

Also under discussion was a handbook titled, ‘The Future of Resource Taxation: 10 Policy Ideas to Mobilize Mining Revenues.’ The handbook comprises innovative, forward-looking ideas by governments, civil society, academia, and industry on how to help developing countries benefit financially from their mineral resources.

The Conference convened in Lusaka, Zambia, from 26-28 June 2020. It was co-hosted by the Zambia Revenue Authority (ZRA), the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), and the African Tax Administration Forum (ATAF). [ENB Coverage of Global Conference on the Future of Resource Taxation]