Actors' participation and power manifestations in tax regimes of small-scale tree growing

Small-scale tree growing is a rapidly expanding yet overlooked subsector with distinct challenges. While most national forest policies target large-scale plantations, they fail to address the unique needs of small-scale tree growing sub-sector. This paper highlights research and policy gaps and examines inconsistencies in local tax decisions and timber trade regulations affecting this subsector, calling for targeted reforms. A pre-study and snowball sampling technique was used to choose a total of 28 informants who took part in two rounds of data collection in the Southern Highlands of Tanzania. The informants included actors who are village and urban-based tree growers, farm service providers, business persons, NGOs and government officials. These actors are not mutually exclusive; a village-based farmer may be a timber buyer or a government official may also be a tree farmer. Using qualitative content analysis, our empirical data shows how government agencies control the decision-making processes regarding taxes and levies. Small-scale non-state actors are consulted for input, but taxing authorities retain final decision-making power. This leads to distrust between small-scale tree growers and government tax agencies, discouraging future investment in the subsector. We conclude that there is inadequate participation of non-state actors, mostly tax papers, in the entire decision-making process, resulting in decisions that disregard their interests. Targeted forest policies that explicitly address the needs of small-scale tree growers should be developed. In addition, a thorough research is required to examine taxation practices from other countries where small-scale tree growing is national interest and integrated into national policies.