Taxes are ALWAYS Transferred to the Consumer

Although the government is threatening to cancel concessions, aggregate traders have raised their prices by up to 17% in opposition to the tax on the extraction of construction materials in Panama.

Wednesday, May 20, 2015

Fourteen days after the start of collections of the tax on extraction of materials, increases of up to 17% have been recorded in final consumer prices in some retail outlets. The law prohibits the transfer the tax to the final price, but builders say that "... it is very difficult to control because it is an operating cost" in the case of housing prices and other real estate projects.

Panamaamerica.com.pa reports that "... In businesses located in areas of the capital and San Miguelito, this material cost $47.50, when before the tax it was $42.50.
In this same area there was also an increase of 16.8% in a yard of stone, which was previously sold at $44.72 and is now sold at $52.25. In Panama West, the increase is similar, 17% and 14% respectively. "

Alejandro Ferrer, president of the Commission for the Capac Market, said "... We are still not seeing the rising cost of housing; for example, this weekend, in ExpoVivienda, the price of houses will be maintained, but in the coming months it will increase. "

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