1. This memorandum follows the meetings between the FAD mission and the Davis Tax Committee (DTC) – Sub-Committee on Oil and Gas - in March 2016. The first part of the note lists the main issues discussed with the DTC oil and gas sub-committee regarding their planned recommendation for tax reform in the oil and gas sector. The second part of the note provides additional fiscal analysis prepared at the request of the subcommittee. The basis of the discussion was both the FAD 2015 report1 and the DTC draft oil and gas report which outlined the preliminary recommendations of the sub-committee.
South Africa – Fiscal Regimes for Mining and Petroleum: Opportunities and Challenges, Philip Daniel, Martin Grote, Peter Harris, and Alpa Shah, IMF Fiscal Affairs Department, April 2015
It is assumed in the analysis that this amount would increase annually in line with inflation, remaining constant in real terms.