If the proposal is accepted, prices will go up, jobs will be lost and the economy will slow down, the industrialists said.
The government is seeking an increase in the tax take of 3 billion quetzals (US$405 million). The proposals include a new customs law, and reforms to value-added, income and vehicle taxes. According to press reports, the increase in the tax take has been suggested by international organizations and the US.
In the first months of 2010, both countries will start negotiating a treaty to avoid double taxation.
The announcement was made by the Panamanian Ministry of Finance and Economy in a press release.
"On November 18th, Belgium authorities sent their Panamanian counterparts a treaty draft. They had previously discussed the topic with the Panamanian delegation at the Global Transparency Forum in Mexico", reported Epa.
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