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.

Source: americaeconomica.com

More on this topic

Costa Rican VAT Regulations Released

June 2019

On June 11, the Regulation of the Value Added Tax Law was published in the official newspaper La Gaceta, which will begin to be applied next July 1.

The Regulation, which was published in Scope 129 of the official newspaper, was submitted for public consultation last March.

Panama and Belgium to Sign Double Taxation Agreement

January 2010

The precise date has not been announced yet; this is the third agreement of this nature negotiated by Panama.

The country has already signed double taxation treaties with Italy and Mexico.

Alberto Vallarino, Panama's Economy Minister, informed: "With this agreement with Belgium, we now have three double taxation agreements being negotiated.

Panama and Mexico Sign Tax Agreement

November 2009

Both countries signed a double taxation agreement.

It is based on the model proposed by the Organization for Economic Co-operation and Development (OECD).

Alberto Vallarino, Panamanian Economy and Finance Minister, explained that "...the treaty establishes that once it is ratified by both parliaments, Mexico will remove Panama from their 'black-list'".

Italy excludes Panama from list of double-taxation nations

May 2008

Italian Foreign Minister Franco Frattini confirmed that Panama will be excluded from the list of countries with double taxation.

The announcement was made at a meeting between Frattini and his Panamian counterpart, Samuel Lewis Navarro, at the recent summit in Lima of leaders of Europe, Latin America and the Caribbean.