ABSTRACT

This report describes the relatively straightforward forest revenue system currently used in Lesotho. Lesotho has 12,000 hectares of forest plantations (State Forest Reserves), which are managed by the government. Forest charges are levied on the production of roundwood from these forests. The report describes the various ways in which forest products are measured and marketed. It also outlines the charges that are levied on these products. The report describes the tariffing system used in Lesotho and the procedure used to set and collect forest revenues. Forest charges have not changed since 1988. It also presents some information about total government revenue collected from the sector, expenditure on the sector and the operation of the Forestry Fund. The report shows that, although the Government supports the recurrent budget for the Forestry Division, the capital budget is largely supplemented by foreign assistance. The report describes some of the ways in which the Government is trying to encourage sustainable forest management with their fiscal policies in the forestry sector.