South Africa Develops Tax Incentive to Help Save Endangered Species
In June 2020, Wilderness Foundations Africa (WFA) approached the country's Department of Forestry, Fisheries and Environment (DFFE) about conservation tax incentives. A tax incentive research incubator was launched to explore how to unlock tax incentives designed for biodiversity management agreements.
The first South African Biodiversity Management Agreement (BMA) for the preservation of endangered species had been developed, the Department of Forestry, Fisheries and the Environment stated on Sunday.
These agreements, developed by the Department of Forestry, Fisheries and the Environment along with the Sustainable Finance Coalition and the Wilderness Foundations Africa, will be implemented by three private rhino and lion owners in Limpopo, the northernmost province of South Africa.
The agreements offer landowners unique tax incentives to conserve biodiversity.
Landowners must take certain measures that further the conservation and management objectives of wild lions and rhinos and are responsible for any costs associated with maintaining the animals. However, through the agreements, these costs can be deducted through the tax incentive.
Black and white rhinos are considered an endangered species since "they are being ruthlessly hunted by highly skilled and armed poaching syndicate," according to the South Africa Nature Reserves. Fortunately, both species have "increased in number in recent years thanks to successful conservation efforts, especially in South Africa", the World Wide Fund For Nature (formerly World Wildlife Fund) stated.