What is the severance pay?
The severance pay is charged on the basis of the removal of natural resources. The tax is not based on profitable manufacturers and partners, but rather on the total amount of resources removed. In some regions, taxes are collected on a graded scale, so small -scale producers are not taxed at the same rate as manufacturers who gain high volumes of natural resources. The severance pay differs from the region to the region, while some areas contain no taxes at all, while others may charge a number of taxes related to the removal of natural resources, including oil and gas taxes, coal taxes, fishing tax and wood tax. This tax can be charged, among other taxes related to the use of natural resources. For example, drilling to Ropum can pay severance pay for all oil removed, except for paying taxes on oil profits.
Critics of severance taxes claim to have chA graceful effect on business in the region by the fact that business costs are higher than in other areas. Studies seem to suggest that this is not the case, because the existence of severance pay is not associated with a lower level of production or unwillingness to do business. Companies using natural resources cannot simply move their operations because they need to work in the area where these sources are available. In the region with sufficient sources of resources do not create severance pay for business discouraging because they are usually set very low and do not eat profits.
regions without severance pay may notice significant losses of potential income. Studies entered in regions where only a few sources are terrified or limited by such taxes that show that the implementation of severance pay could generate large government income, and these revenues could help pay the costs associated with resource mining and also as an expenditure on government.
In some regions rather than manufacturers paid, the severance pay may be paid initialEbitel of resources. The responsible tax is structured to prices for brutal sources. This can lead to the price of the price to end consumers, a slight increase in total costs, and it may be concerned in areas with a high commodity price such as oil and gas.