Learning Objectives

Governments, Revenues, Integrity and Extractive Industries

After studying this unit, you should be able to:

• Be able to talk about the government’s main types of revenues from the extractive industries sector
• Know the difference between royalties, dividends, bonuses and taxes
• Be able to distinguish between different kinds of taxes extractive industries companies pay to the government
• Know what the Extractive Industries Transparency Initiative (EITI) is, and how parliament can be involved in the EITI process

Introduction and Overview

Revenues from the extractive industries sectors play an important role in resource-rich countries. Oil, gas and minerals often provide more than 40% of state fiscal receipts. This Unit will give an overview of which government institutions can collect these revenues and what the main types of revenues from the extractive industries sector are. The Unit will go into detail regarding the Extractive Industries Transparency Initiative (EITI), which sets a global standard for transparency in the revenues from the extractive industries sector by requiring disclosure of payments (by companies) and receipts (by the government). Finally, this Unit will provide entry points for the legislature in this stage of the extractive industries value chain.