At the request of producer cooperatives Congress is considering eliminating the tax for the sector.
What has been suggested is reforming a decree which "designates a 1.5% retention of Income Tax (ISR by its initials in Spanish) on cooperatives for their agricultural activities, which according to these entities affects them, because they generate illiquidity and this prevents coffee farming being a sustainable activity," noted an article in Laprensagrafica.com.
Panamanian producers from the Baru region have formed a cooperative seeking to increase competitiveness.
The new cooperative is formed by 80 producers who have about 800 acres of the nearly 6200 planted in the region.
"Given the harsh realities facing other products like rice, bananas and plantains, many farmers have decided to venture into the cultivation of this palm, whose raw material is sold in Costa Rica for use in the oil and cosmetics industries", reported Prensa.com
The Central American Bank for Economic Integration (BCIE) granted a line of credit of $1.5 million to the Taulabe Credit Union.
The Taulabe Credit Union provides resources to finance working capital and medium and long term operations, the BCIE said in a press release.
The main activity of the credit union is to provide financing for business, housing, productive, agricultural and cattle sectors, to mention a few, in addition to the savings service.