Forestry administration in Uganda is currently changing, as the existing Forestry Department is being transformed into a new self-financing National Forestry Authority. This will involve a number of changes in policies and institutions, which will have an impact on fiscal policies in the sector. This report describes the current structure of fiscal policies in the sector, including the amounts of revenue collected by the Forestry Department, public expenditure on the sector and the sharing of forest revenue with local government. Total forest revenue collection exceeds the operating costs of the Forestry Department but the share retained by central government is less than operating costs. Furthermore, revenue collection is much less than total expenditure on the sector, if investment in forestry projects (including donor funded projects) is taken into account. The report describes the changes in fiscal policies that might be expected after this transformation and presents a number of recommendations about how the current situation of low revenue collection and poor monitoring and control might be improved.