AMOUNT AND DISTRIBUTION OF REVENUE COLLECTED

Total forestry tax collection

Trends in harvesting revenue

Table 8 shows recent trends in harvesting revenue. From 1990 until 1993, the big decrease in harvesting revenue is mainly due to the changes that took place during the revolution of 26 March 1991, characterised by the people’s antisocial behaviour. It can be noted that, in response to some of the factors contributing to this state of affairs, the Guidelines for the Rural Development Sector were passed in 1996. New forestry laws were also implemented at the local, regional and national levels, which redefined many of the tasks of the Forestry and Water Services.

The upward trend in revenue, starting in 1994 to 1996, is explained by the passing of new laws, the application of Decree No. 422 and the reinforcement of forestry monitoring in conjunction with local people.

Table 8           Trends in harvesting revenue 1988 - 1999 (in FCFA)

Source: Annual Reports of the National Forestry and Water Service and Nature Conservation Service.

Trends in transactions revenue

Table 9 shows recent trends in transactions revenue. The high level of transactions revenue during 1988, 1989 and 1990 is explained by the crackdown on offences at the time, as well as the high levels of fines imposed as a deterrent.

From 1991 onwards, a drastic drop in transactions revenue is noted. This is connected to the revision of the forestry law, which resulted in a fall in the level of fines. Moreover, forestry personnel are now no longer assisted by the police.

Table 9           Changes in transactions revenue 1988 - 1999 (in FCFA)

Source: Annual Reports of the National Forestry and Water Service and Nature Conservation Service.

Trends in total forest revenue collection

Table 10 shows the trend in total forest revenue collection (i.e. harvesting revenue plus transactions revenue).

Table 10         Changes in forestry revenue 1988 - 1999 (in FCFA)

Source: Annual Reports of the National Forestry and Water Service and Nature Conservation Service.

Distribution of forest revenue

The taxes collected on wood from harvesting in forest areas are distributed according to Decree No. 98-402/P-RM.

It should be noted that a part of harvesting revenue is paid into the state account. Rebates destined for the development and maintenance of forest areas, as well as those destined for forest monitoring, are paid into two separate accounts. The management of these accounts is defined by a joint law between the Ministry of Finance and the ministry responsible for forest resources.

This distribution of taxes between the Ministry of Finance and forest administration was maintained up until the passing of new laws, notably Law 95-004, which is characterised by important features:

The first text applying this law was the decree of application (Decree No. 98‑422/P‑RM), which defines the distribution of taxes collected on the harvesting of wood (see Table 11). This decree was passed at a time when many points pertaining to decentralisation required clarification.

It is thus that difficulties in implementing legislation were brought to light in 1996, when laws on decentralisation were being passed. Indeed, dispositions in the decree envisaged the distribution of revenue between the state, territorial communities and Rural Structures for Wood Management (RSWM).

Table 11         Distribution of harvesting tax

Source: Decree No 98-422/P-RM.

In Article 4 of Law 95-003 of 18 January 1995, the RSWM are organisations of rural producers registered by the state. Article 14 of the same law gives them a mandate to harvest wood. Thus, they are lucrative organisations that can be considered as cooperatives.

The difficulty in applying Decree No. 98-422/P-RM lay in the fact that it was difficult to envisage the granting of rebates for the RSWM which did not exist (especially for the accounts of the public revenue department) and even less in villages in the state forestry areas. At the end of Article 8 of Law 95-003 it is stated that the RSWM must maintain and take part in the work of renewing forest areas that they harvest. Thus, Law 96-050 of 16 October 1996 determining the constitution and management of forest areas run by territorial communities lays down in Article 14 that territorial communities can delegate to a village the management of a part or area of their territory.

As a replacement for Decree No. 95-422 of 6 December 1995, Decree No. 402 of 17 December 1998 was also passed, which envisages the following provisions:

It should be pointed out that before the signing of Decree No. 98-402/P-RM (i.e. before 1998), transaction taxes were divided up as follows:

The forest service earns a share (25%) of transaction taxes as rewards granted to informers and forestry personnel, so as to motivate and encourage them.