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Ecuador : Indicators

2012 > 20 Key Indicators 2012 > Data on the Distribution of Forestry Royalties and Incentives

In Ecuador there is no direct redistribution of the payments received through the “pie de monte” tax (a tax applied by the state on harvesting of timber from standing trees), which is charged on each cubic metre of timber extracted. It is not possible to determine the exact amount resulting from this tax because the regional offices of the Ministry of Environment (MAE) only sends a total value for taxes collected to the central office with no detailed breakdown. There is no relation between the amounts collected and assigned (to different activities), as the latter depends on a number of parameters such as institutional planning and budget capacity.

In Ecuador a variety of incentives are promoted for both conservation and reforestation. As far as conservation is concerned, there is the Socio Bosque programme, the objective of which is to conserve a variety of ecosystems and improve livelihoods. Current statistics for amounts invested in the programme and other details are available through the website.

With regard to reforestation, up until approximately May 2012, the country operated the Socio Árbol programme, one of the sub-components of which was an incentives programme for reforestation in which the state and the land owner formed a kind of “partnership” for the reforestation of a specific piece of land. There is also a tax on rural lands, which is imposed on the ownership or possession of rural lands with an area greater than 25 hectares, emphasising that wetlands and natural forests duly classified as such by the environmental authority are exempt from payment of this tax. Updated information on taxes collected is available on the Internal Revenue Service website.

Finally, it is worth noting that one of the directorates in the land sub-secretariat prioritises its work on giving title deeds to lands which will form part of forest projects (Socio Bosque, Socio Árbol).

Title a. Forest Partner Programme
b. Regulation for sustainable forest use of dry forests (Official register 157).
c. Reform Law for Fair Taxation in Ecuador (Tax on rural lands) (Official register 242)
Organisation a. Ministry of Environment
b. Ministry of Environment
c. Internal Revenue Service
Date a. 5 December 2008
b. 28 August 2007
c. 29 December 2007, came into force in 2010.
Source a. http://sociobosque.ambiente.gob.ec/
b.http://www.ambiente.gob.ec/sites/default/files/archivos/normativaforestal/bosqueseco.pdf
c. http://www.sri.gob.ec/web/guest/87
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