Tax On Timber Exports Will Remain - Finance Minister

The Finance Ministry says it will not yield to the calls by timber companies for the removal of the ten percent export tax imposed on logs. The levy was imposed as part of government’s efforts to protect the forests.

Finance Minister, Yaw Osafo Marfo explained that government is not only protecting the forest through taxes and concessions but also intends to embark on a major afforestation programme next year.

Mr. Osafo Marfo said the 10 percent tax will not be removed, because it was imposed to check the exports of lumber, which he says has little value.

Import Duty and Value Added Tax on imported timber has however been removed, to encourage local timber companies to import logs to feed their mills. This is expected to reduce the pressure on the country’s depleting forest reserves and ensure that a one million cubic metres quota concession is maintained.

The timber firms are locked up in a battle with government over the granting of more concessions. They have threatened to lay off their workers, if the Timber Utilisation Bill is not passed to give them more concessions.