1

PROPOSED LAW NO. 53 /X

Exhibition of Motives

The forest is an essential heritage to the sustainable development of the Country. In the

however, in our country, where forest spaces constitute two thirds of the territory,

has been assisted, in recent decades at a loss of profitability and competitiveness of the

Portuguese forest.

It complies with the Government to create tools that aim to change the management models

of the national forest heritage, taking place in public policies for measures of

tax character, which contribute to dynamising active forest management, both through the

creation of incentives, as for the accountability of forest owners.

Within the framework of the defence of forest space, it is a priority of the Government o

establishment of conditions that provide better conditions to producers

forest for the active management of the forest, propicier of the generation of income

increased and inductive of sustainable social and environmental valences.

In the seat of value added tax, the benefits of services required by

maintenance of good conditions of management of forest stands are subject to

standard VAT rate, provided that it does not fall under the exemption of Article 9 (9) of the

Code of VAT.

The subjection of the benefits of forestry services of cleanliness and cultural intervention in the

stands at the reduced rate of VAT can contribute to the practice of a management

active in the forest, for its most rational economic harnessing and,

Consequently, for more effective combat against fire, by making those

services more accessible to rural owners exempt from tax.

The amendment of the VAT Code is advised by the state of deficient maneio silvícola

where many national agricultural and forest land are found, situation which, in addition

of being economically and environmentally unsustainable, creates optimal conditions for the

occurrence of fires in these spaces.

The reduced object of this proposed law falls under the terms of the

community regulation. The goods and services that may be subject by the States

members of the European Union the reduced VAT rate find themselves elated in the Annex

2

H of the Sixth Directive 77 /388/CEE of the Council of May 17, 1977, on the

harmonisation of the laws of the member states relating to taxes on the

business volume, being consigned in category 10 those of the type used

normally in agricultural and forestry production and which include the cutting operations of

wood and other forestry services.

But, every year, a significant area of the forest is consumed by fire that,

regardless of their origin, it is often fuelled by poor management

of a very significant part of the forest property.

Thus, it is intended, as yet, with the present proposal to amend Article 112 of the

Code of Municipal Tax on Real Estate to provide municipalities with the possibility of

majorate the incident tax on rustic buildings with forest areas in situation

of abandonment, whose owners do not comply with the forestry practices necessary to their

good maintenance and sustainable management and fire prevention.

It imposes the need to conceptually delimit the rustic buildings covered,

concretizing the fiscal concept of rustic building with forest areas in situations of

abandonment.

In this sense, they are considered rustic buildings with forest areas in situation of

abandonment those who cumulatively do not integrate Forest Intervention Zone,

that do not possess exploitation submitted to the drawn up forest management plan, approved

and executed under the applicable law and which have not benefited from the

forestry operations necessary for the effective prevention of fires.

It also sets out the necessary procedure for the clearance of those buildings that

are found in these conditions, as well as the indication of the entities that

proceeded.

Much of the Portuguese municipalities already find themselves equipped with enclosures

forestry technicians who proceed, together with other municipal services, to the

surveying of the buildings concerned and the identification of the respective owners, to

subsequent communication to the Directorate General of Taxes.

The entities represented in the Forest Advisory Board were heard, the

National Association of Portuguese Municipalities and the organisations of the sector.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

3

Article 1.

Amendment to the Value Added Tax Code

List I appends to the Value Added Tax Code, approved by the

Decree-Law No. 394-B/84 of December 26, it is replaced by the following:

" List I

[...]

1-[...].

2-[...].

3-[...].

4-Pressure of forestry services of cleanliness and cultural intervention

in the stands, carried out on agricultural and forestry farms. "

Article 2.

Amendment to the Municipal Tax Code on Real Estate

Article 112 of the Municipal Tax Code on Real estate, approved by the

Decree-Law No. 287/2003 of November 12, is replaced by the following:

" Article 112.

[...]

1-[...].

2-[...].

3-[...].

4-[...].

5-[...].

6-[...].

7-[...].

8-[...].

9-[...].

10-[...].

4

11-The municipalities, by deliberation of the municipal assembly,

can majorate up to double the rate applicable to the rustic buildings with

forest areas that find themselves in a situation of abandonment, not

of the application of this majority to result in a tax collection lower than

€ 20 for each building covered.

12-Considerate rustic buildings with forest areas in situation of

abandonment, those that integrate land occupied with arvoredos

forest, with use silvo-pastoryl or long-lasting inculcts, and in which

if you check, cumulatively, the following conditions:

a) Not being included in forest intervention zones (ZIF), in the

terms of the provisions of Decree-Law No 127/2005 of August 5;

b) Their exploitation is not submitted to forest management plan

drawn up, approved and executed pursuant to the applicable law;

c) Not to have been in them practiced the minimum forestry operations

necessary to reduce the vertical and horizontal continuity of the load

fuel, in such a way as to limit the risks of ignition and spread of

fires in your interior and in the confining buildings.

13-Constitute competence of municipalities to carry out the survey

of the rustic buildings with forest areas in situation of abandonment and the

identification of the respective owners, by March 30 of each year,

for further communication to the Directorate General of Taxes.

14-[ Previous Article No 11 ].

15-[ Previous Article No 12 ]. "

Seen and approved in Council of Ministers of January 5, 2006

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs