Darren O'Rourke (Meath East, Sinn Fein)
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100. To ask the Minister for Finance the amount of tax revenue forgone through tax reliefs related to forestry by income tax, corporation tax, capital gains tax, value added tax, gift and inheritance tax, stamp duty and other relevant tax relief in each of the years 2010 to 2019 and to date in 2020, in tabular form; and if he will make a statement on the matter. [34416/20]

Darren O'Rourke (Meath East, Sinn Fein)
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101. To ask the Minister for Finance if the analysis and reasoning behind the tax reliefs in the forestry sector will be provided; and if he will make a statement on the matter. [34417/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 100 and 101 together.

I am advised by Revenue that the information available in respect of tax reliefs specifically associated with forestry is as follows:

- Data on the exemption of profits from the occupation of woodlands, including the numbers availing of the relief, and the cost to the Exchequer for 2011 to 2018 are detailed in the table below. (Source: ‘Property Based Tax Exemptions’, available at link: ;)

- Data on the relief from Stamp Duty in respect of the sale or lease of land on which commercial woodlands are growing, including the numbers availing of the relief and the cost to the Exchequer for 2011 to 2019 are detailed in the table below. (Source: ‘Costs of Tax Expenditures’which is available at link: .)

Updates for later years will be published when the relevant tax returns are filed and processed.

In relation to the reasoning behind the reliefs, the 'Budget 2006: Review of Tax Schemes (Voume III), Initial Review of Certain Tax Schemes' found that:

"In relation to the introduction of tax relief for forestry in 1969 and its subsequent extension, Dáil debates and other records do not identify any specific aim or objective for the granting of tax relief to the sector other than supporting government forestry policy which has as its overall aim, the development of forestry to a scale and in a manner which maximises its contribution to national economic and social well-being on a sustainable basis."

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In 2014, the 'Agri-taxation Review: Report of the Agri-taxation Working Group to the Minister for Finance and the Minister for Agriculture, Food and the Marine'recommended that the reliefs should be retained:

"... profits or gains from the commercial occupation of woodlands. Forestry plays a key role as a carbon sink, helping to mitigate the increase in greenhouse gas emissions from other sectors of the economy. Forestry is capital-intensive investment with costs front-loaded. Compared with other industrial sectors it has a relatively long period before returns are realised. The Department of Finance 2006 Review of Tax Schemes recommended that the tax treatment of forestry should remain and this was echoed by the Commission on Taxation in 2009. The Working Group agrees with the concerns of forestry stakeholders expressed during the consultation process that the non-retention of this measure would act as a major disincentive to new investment in forestry."

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Finally, the 2018 'Progress Implementation Update of the Agri-taxation Review 2014', noted that, in order"to assist environmental sustainability, profits or gains from the commercial occupation of woodlands remained tax exempt."

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