October 16, 2015
Boosts for Forestry in Budget 2016
Budget 2016 includes two new measures for the forestry, signalling the importance of the sector to the Irish economy.
The forestry income of active foresters and farmers has been removed from the High Earners Restriction tax, making clear-fell income exempt from tax. Speaking on this significant move, Daragh Little, MD of FEL, said “Removal of forestry from the higher earners income tax threshold is important as it allows forest owners to manage their forests properly and not for tax reasons”. He added, “It also will remove a barrier to timber mobilisation at a time when timber prices and demand are high”.
Some €113.8m will be made available under the Forestry Programme in 2016.According to the Department, this will provide for existing premia payments and support the planting of approximately 7,000ha of new forests. These new forests will not only meet a growing demand for raw timber products, but also make a vital contribution to Ireland’s climate emissions targets.
In addition to planting, the programme provides additional funding for forests roads and woodland improvement.