A REVIEW OF THE FOREST REVENUE SYSTEM AND TAXATION OF THE FORESTRY SECTOR IN FIJI

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This report presents an analysis of the economics of forest harvesting and processing in Fiji. The analysis has been used to examine the level of economic rent from roundwood production and to comment on the forest revenue system in the country. The results and analysis presented here are based on information collected during a two-week mission to Fiji (from 14-24 October 2003), along with additional information collected from FAO databases and other international sources. The paper was prepar ed in response to a request from the Government of Fiji to FAO, for assistance with reviewing the forest revenue system in the country. The requirement for this work arose out of the recommendations of a 1989 study of the forestry sector in Fiji. The analysis here addresses three issues raised in that study, namely: the forest revenue system in Fiji; taxation of the forest industry; and the costs and benefits of the forest industry to the national economy.

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