Guyanese log export taxes will be increased in January 2009 within a new National Log Export Policy designed to stimulate more value-added activities in the country, according to the International Tropical Timber Organisation.
The Guyanese government considered an option of banning log exports but ultimately decided to raise taxes instead.
The new policy implements a three-part tax regime designed to encourage the utilisation of lesser known species of logs.
In January the tax will increase from 2% to 7% for purpleheart, red cedar, greenheart, letterwood, bulletwood, cow wood, tatabu, kabukalli, shibadan, tauroniro, washiba, hububalli, tonka bean, darina and brown silverballi. The rate will rise to 10% from January 2010 and to 12% from January 2011.
The second part will see taxes increase to 7% in Janaury for itikiboroballi, determa, wamara, hakia, mora, dukali, keriti silverballi, wallaba, fukadi and futui.
The third part of the policy has the same tax rates as the first and addresses the export of squares of 8x8in and greater in purpleheart, red cedar, letterwood, kabukalli, shibadan, washiba, hububalli and tonka bean.
Contracts will need approval by the Guyana Forestry Commision before squares can be exported for engineering end uses. Only companies with their own forest concessions will be allowed to export logs.
The new policy is also designed to ensure adequate supply of materials for downstream processors within Guyana.
