Assembly analyzes new tax reform

PANAMA. The National Assembly of Panama is analyzing a new project of fiscal reforms. The new project is the fifth amendment to the tax revenue system since the end of the military regime,

Alberto Vallarino, Finance minister, said Panama has one of the lowest tax collections in Latin America and that the booming sectors of the economy must contribute to social expenses.

The new proposal establishes tax increass on gambling centers, telephone companies, banking services, real state and financial procedures, insurance and legal services. Among the increases, is a 50 percent tax on cigarettes. Half of this tax would be allocated to the National Oncology Institute. The private sector has reacted with resistance. Adolfo Linares, president of the Chamber, of commerce said the project went to the Assembly without consultation. He said ample dialogue is required, this can’t be done just to improve the government's cash flow.