A resource rent tax is a tax on the rents gained on the exploitation of a resource.[1][2][3] It can cover both renewable and non-renewable resources. It is classically understood to be a tax on the surplus value generated by resource exploitation beyond the necessary costs of production (which includes rewards to capital).[1] An investor enjoys relief from taxation until a certain rate of return has been achieved, at which point profits are shared with the host government.[1]
Resource rent taxes are particularly prevalent in mining and petroleum industries.[1] Australia's Minerals Resource Rent Tax covers rents in the mining industry.[4] Norway introduced a resource rent tax on aquaculture (i.e., salmon and trout farming) in 2023,[5] and resource rent tax on onshore wind energy effective January 1, 2024.[6][7][8] In Iceland, a resource rent tax has been placed on fishing industry profits.[9] In Switzerland, there is a resource rent tax on hydropower.[10]
