Forestry tax breaks instead of fines

Welcome news was released today indicating that the Government is preparing amendments to allow all investment in forestry to be tax deductible.

This guarantee of positive and helpful legislation was announced by the Minister of Agriculture, Assunçao Cristas at 'The Forest in Portugal' conference.

It also should be possible to deduct investments made in forestry going back several years. It is already possible for companies to deduct expenditure in forestry and the minister is to release further news on the tax treatment for individuals who spend money on forestry as most forest areas are managed and maintained by small owners.

“One goal is for depreciation over 25 years," said the Minister of Agriculture who hinted also that the Government wants smallholders to be able to apply for funds under the next Community Support Framework where grants can be 100% for projects such as the planting of saplings as well as cleaning the forest of scrub to reduce fire risks.

Cristas said she understood that it is difficult for a person to clear forest paths and scrub alone, adding "Maybe that's why the fines typically are not enforced," This flys in the face of government moves last week that saw tighter legislation approved giving the Ministry of Internal Affairs the job of collecting fines from owners who had not cleaned their forest areas.

Forestry is an important sector of the national economy with 1.4% of the active population working in a sector which is responsible for 10% of Portuguese exports and represents more than 2.1% of GDP.

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