Forestry Sector is an integral primary sector in Fiji and apart from contributing to economic growth; it ensures the conservation, sustainable utilization and management of forest resources.
The Forestry Sector plays a vital role in Fiji’s economic, social and environmental wellbeing; and contributes 0.7 percent to the country’s GDP.
However, this does not take into account the other activities that Forestry is involved with, especially in the Value adding & Manufacturing Sector.
Forestry is a viable sector which has contributed and supported the growth of a few other sectors and industries.
It is also a vital source of energy, employment, livelihood and ecological integrity.
Native forests make up about 75 per cent of Fiji’s forest cover while Pine and Mahogany plantations make up 11 and 8 per cent respectively; and Mangroves make up 6 per cent of the forest cover.
Softwood plantation mainly of Pine (Pinus caribaea), are established mainly in the Western Division while Hardwood plantation mainly of Mahogany (Swietania macrophylla), have been established on logged over rainforests, mainly on the eastern and central parts of the larger islands.
Native forests area is 526,453 hectares, Hardwood plantation area is 58,978 hectares, Softwood plantation area is 76,171 hectares, and Mangrove areas cover 42,601 hectares.
The national annual native forest log production was averaged at 37,244 cubic meters per annumbetween 2011 and 2015.
The total log production for Pine and Mahogany were averaged around 370,261 and 62,948 cubic meters respectively per annum for the same period.
Who will qualify for this incentive?
This incentive is available to a newly incorporated entity engaged in a new business established in the following areas:-
Vanua Levu – included Taveuni, Rabi, Kioa and other islands generally included for government’s administrative purpose as being in the Northern Division. Also Rotuma, Kadavu, Levuka, Lomaiviti, Lau and Nausori-Lautoka region (from Nausori Airport side of the Rewa River (excluding township boundary) to the Ba side of the Matawalu River.
Any company may apply to the Minister for Finance in a prescribed form for an operating licence.
The company is a newly incorporated entity engaged in a new business. The minimum initial level of investment should be $250,000.
The income of any new activity approved and established between:
Import duty exemption on the importation of raw materials, machinery and equipment (including parts and materials) insofar as they are required for the establishment of the business in the Tax Free Region.
Additional 5 years of income tax exemption is available to any company granted a license and having indigenous Fijian landowner equity of at least 25 percent.
Specialized machineries directly used for forestry purposes The importation under concession is subject to the condition that a letter of approval is issued by the Department of Forests in relation to goods under concession.
Fiji Trade Commission – Office 5, Level 5, Harbourside West Tower, Stanley Esplanade, Downtown, Port Moresby
© Fiji Trade Commission (PNG) 2019