Drilling Down on Royalties: How Canadian Provinces Can Improve Non-Renewable Resource Taxes

The key problem with current resource taxes in Canada is not the tax rates, but the design of the taxes, states a new report from the C.D. Howe Institute. In “Drilling Down on Royalties: How Canadian Provinces Can Improve Non-Renewable Resource Taxes,” authors Robin Boadway and Benjamin Dachis suggest that a better design for many provincial resource taxes would be a cash-flow tax, rather than royalties.