Efforts to contain the COVID-19 virus and support those directly impacted are of utmost importance. Around the world, governments are taking unprecedented actions to limit the spread of the virus—adopting measures aimed at protecting the livelihood of their populations and the viability of entire economic sectors.
Members of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) and the African Tax Administration Forum (ATAF) who are designing economic stimulus packages to respond to the immediate impact of the pandemic and its aftermath will need to consider what support they should provide, if any, to the mining sector. Direct government payments to mine workers or distressed mining companies may only be an option for richer countries where the government has the fiscal space to do so. For many developing countries, tax policy may offer a more readily available tool. Whichever approach, policy-makers must recognize that protecting public health and putting people back to work go hand-in-hand.
With developing countries already struggling to mobilize adequate domestic revenues, it is critical that they carefully evaluate options for business tax relief. The level and type of relief required will vary by sector, and company, which is why IGF and ATAF have prepared this guide for resource-rich developing countries specifically. To read the full brief, refer to the IISD website.