Tax on Sugary Beverages Rejected

Panamanian industrialists consider that the approach under which the new tax of 7% on carbonated beverages and 5% on other sugary beverages was defined uses discriminatory fiscal measures.

Friday, November 22, 2019

On November 18, Law 114 was published in the Official Journal, entitled "What creates the Action Plan to Improve Health and dictates other provisions to establish the selective tax on the consumption of sugary beverages and the criteria for its use", which stipulates a 7% tax on carbonated beverages, 5% for other sugary beverages and 10% for syrups, and sugar concentrates for the production of sugary beverages.

You may be interested in "Beverages: Consumer Trends and Preferences"

After this provision was known, on November 21, the Union of Industrialists of Panama (SIP) through a statement stated that "... as a responsible guild and concerned about the welfare and health of our people, we express our interest in working with the government, civil society and other actors, through comprehensive measures that promote healthy lifestyles combined with adequate food and physical activity."

The document outlines that the industry does not share the approach of using discriminatory fiscal measures, but recognize that, unlike what is done in other countries in this case, it is a measure that promotes reformulation to offer products with lower calorie content to consumers.

For the industrial sector it is important to create comparative advantages with other markets and we will continue working to provide different options that meet the needs of consumers, concludes the statement.

See full law (in Spanish).

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More on this topic

Soft Drinks: Extension for Tax Payment

January 2020

Until January 13, 2020, the Sworn Declaration of Liquidation of the Selective Consumption Tax on Soft Drinks may be presented in Panama, corresponding to November 2019.

Law 114 dated November 18, 2019, which entered into force on November 19, 2019, establishes a new rate for the Selective Excise Tax on Soft Drinks, which is why the e-Tax 2.0 system was modified.

Sugary Beverage Tax Applicable

November 2019

A law was published in the Official Journal of Panama that establishes a 7% tax on carbonated beverages, 5% for other sugary beverages and 10% for syrups, syrups and concentrates for the production of sugary beverages.

On November 18, Law 114 was published in the Official Journal, entitled " What creates the Action Plan to Improve Health and dictates other provisions to establish the selective tax on the consumption of sugary beverages and the criteria for its use."

Proposal to Veto New Tax on Sweetened Beverages

February 2019

Panama's business sector asked President Varela to partially veto Law 570, which establishes an 8% tax on imported and domestically produced sugared beverages.

The rejection of the business sector comes days after the National Assembly approved, in third debate, the bill 570, which establishes an 8% tax for sugared beverages of national production and imported and 10% for syrups and concentrates.

New Tax on Sugary Drinks

February 2019

Despite the rejection of the business sector, a law was approved in Panama that establishes an 8% tax on imported and domestically produced sugared beverages.

The National Assembly reported that it approved, in the third debate, Law 570, which establishes a tax of 8% for domestically produced and imported sugary beverages and 10% for syrups and concentrates.

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