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The author gratefully acknowledges useful comments from Messrs. Ames, Anayiotos, Camard, Mills, and Wane; and seminar participants in Mali.
A metric ton contains 32,150 troy ounces.
As a comparison, almost 30 percent of the Malian population depend on cotton for their livelihood.
Mali uses a variety of mineral levies, both direct and indirect. Some, such as the basic income tax, import duties, export taxes, sales tax, value-added tax, property tax- and stamp duties are imposed as part of the government’s general taxing power. Others, such as royalties and equity sharing, are levied with a view to claiming government’s legitimate share as mineral owner. Another group of levies is intended to minimize damage to the environment and restore ecological balance.
The government’s choice of royalty tax is also influenced by dividends and profit taxes, but the paper focuses on the royalty tax because that is a tax specific to the mining sector. The shareholders of the mining companies determine the dividend distribution (government only has a 10% stake and hence a limited say), and profit taxes are applicable to all sectors and is not specific to mining sector
The mining tax regime in Mali is more comparable to those in SSA countries than emerging or advanced economies. Moreover, most of the mining companies are incorporated in South Africa.