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An integrated multiple criteria decision making framework for application in the evaluation of mineral taxation regimes

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  • Banda, Webby
  • Kabwe, Eugie

Abstract

Mineral taxation regimes are usually evaluated based on five criteria, namely, neutrality, progressivity, administrative efficiency, investor risk and government risk. A significant gap in the use of these criteria is not considering trade-offs a policy maker faces in designing a tax regime. The concept of trade-offs between different criteria is an important reason why it is difficult to make an aggregate judgement about taxation regimes being analysed. For instance, it is difficult to choose a mineral taxation system that optimally balances these criteria. In this paper, an integrated multiple criteria decision making framework comprising the Analytic Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) was formulated to address the problem of trade-offs among tax criteria. To illustrate the practical application of the developed framework it was applied in the selection process of Zambia’s robust copper taxation regime. Results show that the 2016 taxation regime is the most robust for Zambia.

Suggested Citation

  • Banda, Webby & Kabwe, Eugie, 2019. "An integrated multiple criteria decision making framework for application in the evaluation of mineral taxation regimes," Resources Policy, Elsevier, vol. 62(C), pages 635-650.
    • Handle: RePEc:eee:jrpoli:v:62:y:2019:i:c:p:635-650
    DOI: 10.1016/j.resourpol.2018.11.012
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    References listed on IDEAS

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    1. Garnaut, Ross & Clunies-Ross, Anthony, 1983. "Taxation of Mineral Rents," OUP Catalogue, Oxford University Press, number 9780198284543.
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    6. Govori, Florije, 2015. "A Different Approach of Tax Progressivity Measurement," MPRA Paper 62846, University Library of Munich, Germany.
    7. International Monetary Fund, 2015. "Zambia: Selected Issues," IMF Staff Country Reports 2015/153, International Monetary Fund.
    8. Mr. Thomas Baunsgaard, 2001. "A Primeron Mineral Taxation," IMF Working Papers 2001/139, International Monetary Fund.
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    Cited by:

    1. Youmanli Ouoba, 2023. "Testing the necessary conditions for sustainability in the mining sector in Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 1-12, January.
    2. Banda, Webby, 2021. "A real options based framework for assessing the international attractiveness of mining taxation regimes," Resources Policy, Elsevier, vol. 74(C).
    3. Banda, Webby & Chanda, Emmanuel K., 2021. "A proposed cooperatives strategy for artisanal and small-scale gold mining sector in Zambia," Resources Policy, Elsevier, vol. 70(C).

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