world news - 30.07.2008
Finland speeds up timber sales by tax relief
The Government's proposal of 23
July 2008 provides that the temporary tax relief will enter into force
retroactively from the beginning of April this year. Its amount will be
50 % to the end of 2009 and 25 % in 2010.
The Government of Finland proposes partial tax relief for income
from timber sales. The purpose of the tax relief is to speed up sales
of domestic timber in order to secure raw material for the forest
industry.
The purpose of the tax relief is to secure the forest industry's access
to timber also in case the next increase of the Russian export duties
will be implemented from the beginning of 2009. Then the duty rate will
be 50 ˆ per cubic metre, which in practice means a total stop of timber
imports from Russia.
The Government will present its legislative proposal to Parliament in
September. The relief will reduce the State's tax income by 170 million
ˆ in 2009. At the same time the Government will present a proposal for
full tax relief for income from first forest thinning. This will cost
the State somewhat less than 10 million ˆ.
Mr Pekka Airaksinen, head of department of the Central Union of
Agricultural Producers and Forest Owners (MTK), says that the tax
relief is introduced at a very opportune moment. He expects it to
stimulate timber trade, but he emphasizes that a precondition for well
functioning and effective timber market is that also the forest
industry is active. He hopes for appropriate purchase offers in the
future for all timber lots on sale.
See also:
- — Finland gives tax breaks to wood sellers
- — Norway secretariat to guide European forest work
- — Vietnam becomes Asia’s biggest exporter of timber furniture
- — Wooden Volkswagen Beetle Gives Us Woodenly Timber
- — Sweden has most renewable energy in the EU