Japan To Give Tax Breaks To Forest Owners

by Mary Swire, Tax-News.com, Hong Kong

19 December 2001

In an effort to preserve privately owned undeveloped land and forests in national and quasinational parks, the Japanese Environment Ministry Tuesday decided to introduce tax breaks for owners who allow certain organizations and local governments to manage their property for them. Under the new system, landowners would sign agreements with local governments or nonprofit organizations involved in nature preservation management.

Landowners who sign what is tentatively called a "landscape preservation agreement" will pay less inheritance tax and no land-holding tax, according to the ministry: "Private land in national and quasinational parks tends to be developed because of its natural surroundings. Also, the government's development standards are less strict for such land, making it even easier for owners to develop it," said an official.

National and quasinational parks are grouped into five categories according to the density of their forests, with each category having different development regulations concerning deforestation, construction and other factors.

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