President Solis has signed a decree declaring of public interest the "promotion, development and formalization of businesses in the social solidarity economy", at the same time as a bill with the same concept is not advancing in the legislature.
Tuesday, August 9, 2016
When the bill on the Social Solidarity Economy was presented in July 2015, theprivate sector expressed doubtsabout a concept that"... represents unfair competition against formal private companies and contributes nothing to the serious fiscal problems of the country, because it reduces the question of tax collections."
Franco Arturo Pacheco, president of the Costa Rican Union of Chambers and Associations of Private Enterprises (Uccaep) told Crhoy.com that"... they are concerned that through a decree 'they are talking in an undetermined way about developing, promoting, strengthening and giving sustainability through goals, targets and indicators of state institutions to the Social Solidarity Economy '. He argued that the country has not yet entered into a substantive enough discussion on the concept and its implications for it to be promoted as a model through a decree. "
"...'The Social Solidarity Economy, which we are not adverse to, is one that encourages and promotes entrepreneurship and innovation with productive vocation and job creation, in partnership schemes such as cooperatives, partnerships, associations, etc.The Social Solidarity Economy we do not like is one that promotesanimosity against the productive sector,' said Pacheco."
The removal of the disqualification from hiring natural and legal persons who have been sentenced for corruption is one of the most important changes made to the bill that creates the Public-Private Partnership Regime.
After the workers and union sectors rejected the bill creating the Public-Private Partnership Regime in Panama, the Assembly decided to suspend its discussion in the second debate.
Responding to the request to extend the period of consultations by a sector of the country, the plenary of the National Assembly suspended discussion of the second debate of Bill 12, which creates the Private Public Association Regime (APP) as a tool for the development of private sector investment, social and job creation, reported the government on August 27, 2019.
For Panama's business sector, public-private partnerships are contracts that, if properly implemented, could promote the dynamism of the economy and at the same time diminish the fiscal pressure on the State budget.
The Chamber of Commerce, Industries and Agriculture of Panama has promoted since the beginning of the current government administration, a draft bill that creates the Public-Private Partnership Regime (PPP), given that this document would promote the development of the country, explained the business guild through a statement.
A bill creates the regime of "Social Solidarity Economy", which creates exemptions from virtually all taxes for companies registered in the scheme.
The vice president of the Chamber of Commerce of Costa Rica, Victor Ruiz, said that "... the model of the ESS (Social Solidarity Economy) represents unfair competition against formal private companies and contributes nothing to the serious fiscal problems of the country because it reduces the question of tax collection. "
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