Rent Payments For The Special Use Of Forest Resources Serve As A Resource-Cadastre Instrument Of Fiscal Regulation In Forest Resource Utilization

Abstract

The rent charge for the special use of forest resources constitutes a fiscal instrument of a resource-cadastre nature, which secures budget revenues while simultaneously encouraging the rational exploitation of forests. The purpose of the study is to examine the national practice of administering this payment, to identify its main advantages and shortcomings, and to outline avenues for improving the mechanism of its assessment and collection. The methodological framework encompasses an analysis of the positive outcomes and shortcomings in the functioning of the rent charge for the special use of forest resources in Ukraine, as well as the development of scientifically grounded proposals aimed at enhancing the procedures for its assessment and collection and at strengthening its societal acceptance. The study employs methods of analysis and synthesis, comparative assessment, and tabular and graphical presentation of materials.

The findings indicate that the principal benefits of this fiscal instrument include: regularity of payments; the capacity to finance the restoration and improvement of forest resources; a relatively equitable distribution of revenues derived from forest utilisation; the promotion of prudent and efficient use of forests; the precedent of rent charges in European Union countries; simplicity of calculation; and the cultivation of responsible attitudes towards forests.

Among the shortcomings identified are: unreasonably low rates; inadequate cadastral accounting and insufficient digitalisation of forest data; and a lack of trust among payers regarding the administration of the charge.

Conclusions. Overcoming these challenges requires: a substantial increase in rates; the introduction, after the cessation of the war, of a temporary special regime for the accumulation of funds in the accounts of forestry enterprises with their strictly earmarked use for forest restoration and improvement; the resumption of comprehensive cadastral work and the updating of geoinformation databases (“Forests of Ukraine” and other relevant systems); and the provision of transparency regarding the mobilisation and utilisation of accumulated rent charge revenues for the special use of forest resources.