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International Monetary Fund

and Exchange Trade (Uzoptbirzhetorg). The new voluntary association consists of 11 trade firms (open joint-stock companies), territorial brokerage companies, commodity and raw material stock exchanges, a bank, and a transportation expediting agency. The Association also has a number of industrial enterprises (producing among other goods, building materials and consumer goods), processing firms (such as procuring paper from waste paper), production services and leasing services. The major activity of the Association is trade and intermediation activities. However, it

Mr. Saji Thomas and Mr. Arnim Schwidrowski
Countries generally tax the forestry sector to achieve the twin objectives of revenue maximization and sustainability of logging levels. In an ideal world of perfect markets and information, auctions would be the best instrument to determine the price of extraction rights. However, a number of factors-including a lack of information on the forest resources under consideration, uncertainties as to the stability of property rights over time, and a lack of access to credit-have limited the use of auctions so far, particularly in low-income countries. To establish transparency of the forestry sector's financial flows, this paper discusses a radical simplification of Liberia's current timber tax structure, including a proposal to reduce the sector's current tax system to two instruments, an area tax and an export tax.