Utility of Flexible Mechanisms and Progressive Tax System in Ensuring Stability in Fiscal Regime of Petroleum Contract: An Appraisal
Article from: OGEL 3 (2004), in Taxation
Introduction
As petroleum contract involves significant capital risk and long duration, quest for stable return either in the form of profit for International Oil Companies or revenue for the host countries, remain a constant source of concern and conflict between the parties. The importance of fiscal stability can hardly be overemphasised as the perception of instability in fiscal regime which may result in diminution of expected cash flows, is always a significant factor that is taken into account by the IOCs in investment decision in petroleum sector. Even an attractive fiscal ...