Forestry Sector

Fiji is blessed with a forest cover of 1.1million hectares (ha) which covers 60% of our total land area and contributes around $544 million annually in terms of ecosystemservices. It continues to support increased export earnings, foreign & local investment, increased employment and economic growth, and support future generations

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.

OPPORTUNITIES IN THE FORESTRY SECTOR

  • Fiji has standing forest cover of 1,045,419 hectares representing 60% of the total land mass.
  • Mahogany plantations in Fiji are a unique resource with standing forests up to 40 years old.
  • Value adding Cocowood to veneer has great potential for high-valued commodity to thrive in Fiji.
  • Teak is an upcoming high-valued hardwood timber in Fiji that has the potential to do well in this country because of the climatic condition we have suited for Teak planting.
  • Fiji is a signatory to international and regional environmental conventions such the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
  • Apart from exporting timber, higher monetary value can be obtained from adding value to the timber being processed. This can be in the form of furniture & fittings, artifacts and wood carvings.
  • The tax free region offers tax free status and exemption on the importation of raw materials and machinery.
  • The production of waste wood left over from harvesting can be converted to furniture and other decorative wood items.
  • Great opportunities for further plantation expansion for sandalwood.

INCENTIVES

TAX FREE REGION

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.

CRITERIA FOR GRANT OF LICENCE

The company is a newly incorporated entity engaged in a new business. The minimum initial level of investment should be $250,000.

TAX EXEMPTIONS AVAILABLE

The income of any new activity approved and established between:

  1. 1 January 2009 to 31 December 2018 for Rotuma, Kadavu, Levuka, Lomaiviti & Lau
  2. 1 January 2014 to 31 December 2018 for East of Viti Levu (Korovou to Tavua region)
  3. 1 January 2016 to 31 December 2018 from the airport side of the Rewa Bridge excluding the town boundary of Nausori, up to the Ba side of the Matawalu River shall be exempt from tax as follows:
    • Capital investment from $250,000 to $1,000,000, for a period 5 consecutive fiscal years; or
    • Capital investment from $1,000,000 to $2,000,000, for a period of 7 consecutive fiscal years; or
    • Capital investment above $2,000,000 for a period of 13 consecutive fiscal years.

DUTY EXEMPTION

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.

OTHER BENEFITS UNDER THE TFR

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.

OTHER INCENTIVES

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.

  • Fiscal Duty – Free
  • VAT – 9%
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Fiji Trade Commission - PNG & MSG

PO. Box 883
Port Moresbey 121
National Capital District
Papua New Guinea

P: +675 320 2208/ E: info@fijitradecom.org

Fiji Trade Commission – Office 5, Level 5, Harbourside West Tower, Stanley Esplanade, Downtown, Port Moresby

© Fiji Trade Commission (PNG) 2019