Fiscal Analysis of Resource Industries: (FARI Methodology)
Technical Notes and Manuals, February 24, 2016
Source details
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- Fiscal Analysis of Resource Industries: (FARI Methodology)
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Bibliographic details
- Authors: Oana Luca, Diego Mesa Puyo
- Published: February 24, 2016
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9781513575117.005
Summary and purpose
- Introduces key concepts and methodology used by the Fiscal Affairs Department (FAD) in its fiscal analysis of resource industries (FARI) framework.
- Emphasizes that proper evaluation of fiscal regimes for extractive industries (EI) requires economic and financial analysis at the project level.
- Presents FARI as an analytical tool for fiscal regime design and evaluation, and as a revenue forecasting tool.
Core capabilities of the FARI framework
- Calibration of fiscal parameters.
- Sensitivity analysis.
- International comparisons.
- Estimation of composition and timing of expected revenue streams from the EI sector.
- Analysis of revenue management issues, including quantification of fiscal rules.
- Integration of EI sector revenues into country macroeconomic frameworks.
- Comparison of actual, realized revenues with model results for tax gap analysis (useful for revenue administration practitioners).
Primary applications
- FAD’s advisory work on fiscal regime design.
- Revenue forecasting for IMF economists and government officials.
- Revenue management and fiscal rule quantification.
- Revenue administration practice, including tax gap analysis.
Subject coverage and keywords
- Subject: Commodities, Corporate income tax, Currencies, Discount rates, Financial services, Fiscal Analysis of Resource Industries (FARI), Money, Oil, Resource rent tax, Revenue performance assessment, Taxes
- Keywords: Africa, capital expenditure, cash flows, Corporate income tax, cost of capital, Currencies, discount rate, Discount rates, Fiscal Analysis of Resource Industries (FARI), fiscal regime design, income tax, internal rate of return, Mining taxation, Oil, payback period, petroleum taxation, profit petroleum, Project net cash flows, TNM, withholding tax
Content in this bundle
- _tnm1601 - Executive Summary