(Prensa.com) Due to the lack of incentives for reforestation, each year more and more hectares of the country that are engaged in livestock, agriculture and residential development projects, and fewer still are devoted to planting trees for commercial use.
Environmental authorities and representatives of companies with reforestation projects believe that legislation is needed to revive the tax incentives for such investment.
Reforestation for commercial purposes generates foreign exchange and employment for the country, but also has a significant environmental impact.
When it passed Act 24 of 1992, which offered tax incentives to this sector, were reforested an average of 4 hectares per year, but when it was repealed in 2001, the statistics began to reflect a decrease in the number of hectares planted.
Sector concerns have come to the National Assembly, where they are already working on a draft of a new forestry law that would give bonuses and incentives to companies who reforest.
Commercial species
Product plantations established in past years, in 2005 there were 60 thousand hectares reforested in the country. Six years later only planted 13 000 hectares.
Until today, all over the country there are 73 000 257 hectares reforested with commercial species (teak, pine, cedar and acacia), according to figures from the National Environmental Authority (ANAM).
Of hectares reforested, 65% are of teak, 17% of Caribbean pine, cedar hawthorn 3% and 15% species remaining.
Most of these plantations for export of timber, mainly to India.
Reforestation was made 20 years ago begins to reflect on timber exports that records the Comptroller General of the Republic.
In 2010, Panama 86 million kilos exported timber worth $ 12 million, an increase of 59 million kilos and $ 8 million, compared with the previous year.
Deleted Incentives
Law 24, which was repealed in 2001, provided that the utilities, natural or juridical persons, derived from the commercialization of products extracted from forest plantations, until the final cut of the tree were exempt from income tax.
The regulations provided for a period of 25 years and required the owners of these plantations were enrolled in the registry Forestry Anam.
Are considered deductible expenses for purposes of income tax, 100% of forestry investments or indirect forest investments made by natural persons or legal entities.
Also declared exempt from import tax and other fees, the introduction to the country of agricultural machinery and equipment, forestry, industrial and other items needed for reforestation.
Were also exempt from tax property transfer, “the farms dedicated to reforestation in more than 50% of their field or have a minimum of 200 hectares reforested.
Despite the environmental benefits of reforestation, investment is considered high risk by banks and insurance. Primarily affect them threats of fire and drought.
Entrepreneurs linked to the National Association of Panama Reforesters and Allied, which brings together companies that engage in this activity, said that other activities such as agriculture that has more support. Some industry representatives are hoping the adoption of new incentives for the forestry industry that will translate into economic and environmental benefits.
Teak and pine woods commercial
Teak is a hardwood species more important globally, as it has been planted in more than 50 tropical countries. In Panama occupies over 50% of reforestation plantations. Experts estimate that the total area planted with teak represents about 50 million hectares.
The average tree produces wood after 10 years and its quality depends on soil fertility. Demand for industrial use teak and indicate the reasons why most of the reforestation investments are concentrated in this species.
In the area there are also areas of Veraguas pine were planted 40 years ago with the help of international agencies. Some analysts believe that Panama has implemented policies to take advantage of the wood industry, since production is exported is achieved without any added value and on the contrary there are fewer shops that are devoted to woodworking .