Reduction in taxes by the Kachin Independence Organization (KIO) notwithstanding, Chinese timber businessmen are yet to resume logging in Burma's northern Kachin State, said a local source.
In the second logging season this year, the Central Treasury Department of the KIO has reduced tax on hardwood to Chinese Yuan 650 (US $96) per Lifang (1 Ton = 1.3 Lifang). But Chinese timber traders have offered to pay up to 400 Yuan per Lifang, sources close to the KIO said.
Early this year, before the Beijing Olympic Games, the KIO had collected 780 Yuan (US $115) tax on a Lifang of hardwood. The Chinese businessmen, however are not keen to buy timber like they did early this year, a local timber trader told KNG.
The haggling over taxes between the KIO's Central Treasury Department officials and Chinese timber traders in China's southwest Yunnan province has been on for some time now but the stalemate continues, according to sources close to Chinese log traders.
At the moment, a small amount of timber from Kachin State is being despatched to China. However border timber trade is at low ebb and Chinese traders want to buy teak only at 8,000 Yuan (US $1,176) per Lifang, added local log traders.
On September 20, the new Burmese Northern Command (Kachin State) commander Maj-Gen Soe Win officially granted logging permits to all Kachin ceasefire groups including the junta-backed Kachin militia group known as the Rebellion Resistance Force (RRF) in Khonglangfu in Putao District led by businessman Ahdang.
Timber in northern Burma is mainly transported to China through several checkpoints controlled by the KIO and other Kachin ceasefire groups, the New Democratic Army-Kachin (NDA-K) on the Sino-Burma border.
The net income from timber is crucial for the two Kachin ceasefire groups after they signed ceasefire agreements with the ruling junta over a decade ago, said sources in the two organizations.
China has officially banned importing illegal timber from northern Burma following international pressure since late 2005. However cross border timber trade continues unabated, said border traders.
