Rent for the Use of Subsoil for the Extraction of Mineral Resources Constitutes a Socio-Cadastral Instrument for Regulating Mineral Resource Extraction Processes

Abstract

Rent for the use of subsoil for the purpose of mineral extraction belongs to socially oriented fiscal instruments, the calculation of which is based on cadastral approaches. The aim of the study is to provide a comprehensive analysis of the domestic framework for levying this payment, to identify its strengths and problematic aspects, and to formulate well-substantiated proposals for its modernisation. The methodological framework is based on identifying the advantages and disadvantages of the procedure for levying the analysed rent payment and developing recommendations for improving the mechanism of its calculation and payment. The study employs tools of analytical generalisation, comparison, and tabular and visual interpretation of the obtained results. The findings of the study indicate that the constructive effects of the analysed payment include the regular replenishment of budget revenues, a differentiated distribution of the tax burden among payers, incentives for the rational extraction of resources, alignment of extractive interests with the social and environmental priorities of society, the relative simplicity of tax calculation, and the promotion of conscientious taxpayer behaviour in assessing and remitting the payment. Systemic shortcomings of the tax include the variability of rates and certain elements of its calculation mechanism, inconsistencies in approaches to the allocation of revenues with a predominance of the central government, dependence of the tax burden on volatile commodity prices, adjustment coefficients and extraction conditions, as well as an insufficient incentive effect in promoting the adoption of environmentally friendly extraction technologies. Conclusions. Optimisation of the mechanism for levying the analysed payment should be implemented through ensuring the stability of its regulatory framework, introducing variable rates that account for the characteristics of deposits, their degree of depletion, extraction complexity, and resource quality, the use by extractors of geoinformation systems in combination with automated production accounting, strengthening incentives for the adoption of resource-efficient technologies, and revising the distribution of accumulated tax revenues in favour of territorial communities where mineral resources are extracted.