Bolivia Information Forum Bulletin: Special Edition on Extractive Industries. Significance and implications of the increase in hydrocarbons rents

Bolivia Information Forum Bulletin: Special Edition on Extractive Industries. Significance and implications of the increase in hydrocarbons rents

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Significance and implications of the increase in hydrocarbons rents

BOLIVIA INFORMATION FORUM

Bolivia Information Forum Bulletin Special Edition on Extractive Industries – March 2013

In 2005, before Evo Morales became president, a new hydrocarbons law was passed which changed the tax regime in the hydrocarbons sector. The new law obliged firms to pay 32% in the form of the Direct Hydrocarbons Tax (IDH) and another 18% in the form of royalties. This raised the tax burden for oil and gas companies from under 25% of gross value of output in 2004 to 37% in 2005.

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