Sugary Beverage Tax Applicable

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.

Thursday, November 21, 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."

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

Article 9 of the aforementioned law explains that "... It establishes the selective tax on sugary beverages, which will be 7% for carbonated beverages, 5% for the rest of sugary beverages, whether domestically produced or imported, and 10% for syrups, syrups and concentrates for the production of sugary beverages.

The selective consumption tax rate of 7% for sugared beverages will also be applied to tariff item 22.02.

Foods based on dairy products, grains or cereals, nectars, fruit juices, vegetables with natural fruit concentrates and their concentrates and those products in general whose grammage is less than 7.5 grams of sugar per 100 ml of sweetened beverage will be exempt from the selective tax on consumption of sugary beverages."

Rafael Carles, a Life Blends businessman, told Prensa.com that "... it is now up to the authorities to ensure that the taxes that are going to be collected are well used for the promotion of educational campaigns to curb the increase in non-communicable diseases, such as diabetes, hypertension, cancer, among others.
"

See full publication (in Spanish).

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More on this topic

Tax on Sugary Beverages Rejected

November 2019

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.

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.

Controversy Over Tax on Sweetened Beverages Remains

April 2019

Although at the request of the business sector, President Varela vetoed the bill establishing an 8% tax on local and imported sugary beverages, Panama's National Assembly will insist on approving it.

The National Assembly approved in third session the new taxes, however, the business sector asked the Panamanian president at the end of February 2019 to veto the bill, which establishes a tax of 8% for sugared drinks 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.

Panama: Tax on Sugary Drinks

October 2017

A legal initiative aims to establish a selective consumption tax of 8% on the price of sugary drinks, whether they be imported or domestic.

Although the bill introduced by two deputies of the Democratic Revolutionary Party (PRD) has yet to be discussed in the Legislative Assembly, the Varela administration has already announced that it does not support the initiative. 

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