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This report by DNA Economics for the Institute for Economic Justice (IEJ) analyzes various progressive financing options to fund a Universal Basic Income Guarantee (UBIG) in South Africa. It evaluates the revenue potential of nine specific tax measures, including a Social Security Tax, Resource Rent Tax, and Luxury VAT, and models their impact on national debt and the primary balance over the Medium Term Expenditure Framework (MTEF).

This supplementary guidance note provides a framework and a financial modelling tool to help governments estimate the total cost of mining tax incentives, specifically focusing on the 'hidden' costs arising from investor behavioural responses. It details how to calculate direct costs, model behavioural changes such as high-grading and excessive interest deductions, and test these estimates through sensitivity analysis and scenario modelling.

This guide, published by the International Institute for Sustainable Development (IISD) in 2018, provides a framework and a financial model developed by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) to estimate the costs of tax incentives in the mining sector. It specifically focuses on calculating both the direct revenue losses and the indirect costs resulting from 'behavioral responses'—actions taken by investors to maximize financial benefits from incentives, which often lead to unforeseen revenue losses for governments.