Deforestation In Brazil
This paper aims to highlight the legal and fiscal policies of the Brazilian government which directly encourage deforestation of the Amazon forest. It focuses on five key aspects of government policy:
- Taxes on agricultural income
- Rules of land allocation
- Land taxes
- Tax credit schemes
- Subsidized credits
Furthermore, it the author suggests several provisions such as increased incentives for forest guards in order to curb the deforestation practices.
Brazil’s income tax laws for agriculture virtually exempt it and instead turn it into a tax shelter. Special provisions under the law allow corporations and individuals to exclude up to 80% and 90% of their agricultural profits, respectively, from income tax. Although this is a great method to encourage the occupation of farming, this provision is instead misused, abused and taken advantage of. Corporate agricultural profits are taxed at a rate of only 6%. When combined with the depreciation provisions on fixed investments, …show more content…
The right states that any ‘squatter’ who has been living on an unclaimed public land for over one year and one day and has put the land to effective use, has a usufruct right over 100 hectares. If he has been effectively squatting for more than five years, then he has the added right to acquire a title. This law is also misused by corporations as lands under federal control can be claimed up to 3000 hectares. Additionally, wealthy corporations have the capital to build their own access into remote parts of the forest which the poor do not have. Rules of land allocation encourage rapid deforestation due to another legal and administrative process called ‘regularization’ which states that the final amount of land that can receive a title or ownership is a multiple of the area that get converted into a
- Taxes on agricultural income
- Rules of land allocation
- Land taxes
- Tax credit schemes
- Subsidized credits
Furthermore, it the author suggests several provisions such as increased incentives for forest guards in order to curb the deforestation practices.
Brazil’s income tax laws for agriculture virtually exempt it and instead turn it into a tax shelter. Special provisions under the law allow corporations and individuals to exclude up to 80% and 90% of their agricultural profits, respectively, from income tax. Although this is a great method to encourage the occupation of farming, this provision is instead misused, abused and taken advantage of. Corporate agricultural profits are taxed at a rate of only 6%. When combined with the depreciation provisions on fixed investments, …show more content…
The right states that any ‘squatter’ who has been living on an unclaimed public land for over one year and one day and has put the land to effective use, has a usufruct right over 100 hectares. If he has been effectively squatting for more than five years, then he has the added right to acquire a title. This law is also misused by corporations as lands under federal control can be claimed up to 3000 hectares. Additionally, wealthy corporations have the capital to build their own access into remote parts of the forest which the poor do not have. Rules of land allocation encourage rapid deforestation due to another legal and administrative process called ‘regularization’ which states that the final amount of land that can receive a title or ownership is a multiple of the area that get converted into a