In order to supplement the resources available under the various afforestation schemes of the Forest Department, Karnataka Forest Development Fund (KFDF) was created in 1975. Forest Development Fee (earlier, Forest Development Tax) is levied on the forest produce disposed by the Forest Department, Forest Corporations, and ‘a body notified by the State Government’, as interpreted in the Karnataka Forest (Amendment) Act, 2016. The Forest Development Fee is 12 of the sale value of the forest produce. The Forest Development Fee collected is initially credited to the consolidated fund of the State and subsequently transferred to the Karnataka Forest Development Fund (KFDF). The funds credited under KFDF are made available to the Department for raising plantations and for carrying out other allied activities.