Nicaragua: Incentives for Forest Production

NICARAGUA NEWS — The Nicaraguan Forestry Institute is preparing a bill which proposes giving monetary incentives to small producers with plantations of 1-10 hectares.

d8256864This measure seeks to benefit more than 3000 SMEs which sell timber produced in their plantations. Large companies fall outside this law, because they are already covered by the Tax Concentration Act. reports that “… In order to obtain this monetary incentive, small businesses must meet certain standards and requirements, including that their plantations must have up to 80% sustainability. ”

The head of the Nicaraguan Forestry Institute (Inafor), William Schwartz, added “… The proposed law is still in the process of consultation with businesses dealing in timber for reforestation, but the Inafor is already applying some monetary incentives to small and medium producers in that area, those incentives will be kept for 3 years. ”