A system of payments (60 per cent to the canton and 40 per cent to FBiH) for conversion of forest lands into mining areas was introduced in FBiH, with a requirement to pay for cutting and also for afforestation, including 20 years of maintenance for afforested areas. Both entities apply 0.07 per cent forest tax (required by' forest law) on the profits of all legal entities operating in the country'. This money goes to the budget and is supposed to be used for forestry development.