This law amends the Revised Forestry Code of the Philippines (Presidential Decree No. 705) by incorporating provisions from the National Internal Revenue Code of 1977, specifically concerning forest charges on timber and other forest products.
Key Provisions of the Amendment:
1️⃣ Increase in Forest Charges – The law raises the charges imposed on naturally grown timber and other forest products harvested from Philippine forests.
2️⃣ Forest Charges on Naturally Grown Trees – Any naturally grown trees cut inside private lands are subject to forest charges, ensuring that even trees outside public forests contribute to government revenue.
3️⃣ Exemptions for Planted Trees & Industrial Tree Plantations (ITPs) –
- Planted trees (as opposed to naturally occurring trees) harvested from private lands or Industrial Tree Plantation areas are exempt from forest charges.
- This exemption encourages private reforestation and commercial tree farming, promoting sustainable forestry investments.
Implications for Agarwood & Other High-Value Crops
For your Agarwood and high-value tree businesses, this means:
✅ No forest charges for Agarwood and other planted trees grown on titled private lands or within ITPs.
✅ Forest charges apply only if harvesting naturally grown trees (wild Aquilaria species) inside private lands.
✅ Encourages commercial plantation development to avoid taxation and promote sustainable agroforestry.