Judith Pena | February 6, 2023
The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) and the Panamanian Association of Business Executives (APEDE), rejected the implementation of Municipal Agreement No. 142 of Tuesday, August 2, 2022, which establishes a rise that they consider without consultation to the rates of municipal taxes, reason why they have requested the immediate suspension of the same.
“We are concerned about the way in which the discussion of this agreement took place, which was focused on an extension of the moratorium for the payment of surcharges and interest generated to taxpayers of the Municipality of Panama affected by the pandemic, and not on modifying the monthly taxes paid by each business premises. This decision will affect a number of companies that are still in the recovery process, and that will be affected by this increase,” said Marcela Galindo, president of the CCIAP.
For its part, APEDE stated that this measure was not consistent or consistent, since taxpayers have so far learned of these increases in various taxes and tributes, many of them by more than one hundred percent (100%), which is not consistent with the economic reality they live in at the moment.
“The economic situation that taxpayers in the Capital District are going through, mainly micro and small businesses, cannot support an increase in municipal taxes and will cause many to have to lay off employees and cut their expenses, which will result in less economic activity and less jobs,” they said.
Galindo also considered that previously, when this type of review has been carried out in municipal taxes, the Chamber of Commerce, Industries and Agriculture of Panama has always been invited to participate, in order to contribute positive ideas that help all parties involved, as well as to inform and be able to prepare the business sector before the fiscal and tax changes that are registered, “but this time it did not happen like that.”
Due to the above, “we request that the application of these new municipal tax tables be suspended and that a credit be granted for next year to the companies that have already paid their taxes on the basis of this Agreement,” added Galindo.
While APEDe urged the Councilors and the Mayor of the Capital District, José Luis, to immediately suspend this increase in the payment of taxes and tributes and to repeal Agreement No. 142 of August 2, 2022, for the benefit and peace of mind of the taxpayers who, day by day, are looking for a way to alleviate the difficult economic situation that the country is going through, in which we have calmed down as a result of the covid-19 pandemic, from which we have not yet emerged.
The president of the CCIAP specified, in the same way, that the municipal collection of the year 2022 is not known, nor what is the new investment program that the Municipality of Panama has that led it to rise; “For this reason, the business sector requests, like all citizens, an explanation of the reasons that support the reform that was made to the table of municipal taxes, and in the use of these resources.”
