Tobacco lobby wins big on tax

PANAMA. Anti-smoking groups and legislators are furious that the government´s proposal to raise cigarette taxes from 32. 5 percent...

PANAMA. Anti-smoking groups and legislators are furious that the government´s proposal to raise cigarette taxes from 32. 5 percent to only 50 percent was passed in the National Assembly. They say it “smells like corruption” because it is remarkably close to the amount the tobacco industry indicated it was willing to accept, and far below the amount the anti-smokers wanted to impose.

Nelida Glygo of the Panamanian Coalition Against Tobacco, suspects that tobacco lobby groups were involved in fixing the rate - which goes against Panama’s framework convention that stipulates that the tobacco industry cannot give an opinion about tax rates.

“To listen to the tobacco companies is the worst thing they could have done because these companies come here to poison our people,” Glygo said.

She said she would be sending a letter to President Ricardo Martinelli requesting him to veto the part of the new tax law that refers to the tobacco companies. Legislator Alcibiades Vasquez plans to back her up.

Glygo also said that it was proven that raising the cost of cigarettes reduces consumption. Rafael Aparicio of the Medical College of Panama agreed with her. He said that if the taxes were allowed to remain at just 50 percent it would be a setback to the anti-smoking movement and would encourage smokers to continue.

Lo Nuevo