Sales of forests in Ireland have reached a record high, with €77m saved in stamp duty last year.

As forests work as a carbon store, the Government incentivises planting by providing stamp duty and tax relief on the sale or lease of commercial woodlands.

Data from Revenue shows that since 2017 there has been a surge in the value of stamp duty saved by forestry buyers.

Interestingly, the number of claimants has roughly remained the same, with 193 claimants saving €39m in 2017 and 189 claimants saving €77m in 2019.

This indicates that the size and value of forests being bought or leased is increasing.

The information was revealed by Minister for Finance Paschal Donohoe in a parliamentary question asked by deputy Darren O’Rourke.

Challenges for sector

Despite the increase in stamp duty relief foregone by Revenue, there are still many challenges facing the forestry sector, with debate over areas planted, such as Co Leitrim, and major hold-ups in obtaining planting and felling licences.

These challenges are also part of a wider issue facing the agriculture sector in terms of carbon emissions, with many pinning their hopes on the use of Irish forests as a means to sequester carbon which will work in favour of the sector.

Despite the rise in stamp duty relief, there is also concern at the low level of planting in the country, with successive Governments failing to meet the annual target of 8,000ha per year.