Reducing income taxes and increasing tax on natural rents – a way to intensify the production of forest products and services

Kozhuhov N. I., Tikhomirov E. A.

On the example of the forest resources of the Russian Federation, although a noticeable, but not so economically attractive component, in comparison with the potential of the fuel and energy complex (FEC), one can notice how persistently for decades the largest timber industry corporations in Russia and their owners prove the need to keep low prices for timber grown on forest lands, thereby successfully appropriating forest rents and forcing the state to subsidize the reproduction of forest resources. The article shows that the creation of a rational mechanism for determining the level of natural rent for tax purposes in the forest sector of the economy will lead to an increase in economic interest, as a lever to control the process of deepening the degree of wood processing, which will inevitably lead to an increase in the added value of final consumption products, and restore balance and balance of interests in the entire technological chain of forestry sectors: from forest cultivation and forest protection to deep mechanical and chemical processing of wood raw materials.

Keywords:natural rent, forest taxes, timber industry, value added, valuation of natural resources