The Rainforests of Cameroon - PROFOR

APPENDIX 10Technical Adaptationsto Better Integrate the Tax Regimeand Auction SystemExperience over the past several years makes it possible to assess the prosand cons of the instruments used in Cameroon’s forest tax regime andauction system and to suggest various adaptations that might improvetheir integration.Area fee. The area fees proposed by private operators through theauctioning procedure are significantly higher than area fees fixed underthe earlier administrative system. This change indicates that the industry’swillingness to pay to access long-term concessions was higher thancommonly thought. Competitively determined area fees• Reveal the commercial timber value of forests and allow the countryto capture a greater share of the forest economic rent;• Allow more transparency in the allocation system and avoid disputesover the area fee level; and• Allow local redistribution of the fees collected (to local councils andcommunities) on a simple and permanent basis (area based).Delivered by The World Bank e-library to:Relevance of preliminary inventory. The World Bank One objection to the reform wasIP : 192.86.100.34that without a comprehensive Mon, 09 inventory Nov 2009 17:06:18 of resources throughout the forest,commercial concession value would remain largely unknown and theauction would be impracticable. Financial means should be given to the181(c) The International Bank for Reconstruction and Development / The World Bank