The collection of excise tax on liquor will be made effective by the National Revenue Authority (ANIP) and the National Customs Authority.
From a press release issued by the National Assembly of Panama:
With 41 votes in favor, one against and zero abstentions, the plenary of deputies of the National Assembly approved on its third reading bill 619, amending Article 7 of Law 45 of November 14, 1995, concerning a selective consumption tax on alcoholic beverages.
Businessmen indicate lack of consultation with the affected sectors, and have expressed their concern about the impact of the new tax on competitiveness.
Bill 559, which amends sections of Act 45 of 1995 on the excise tax on alcoholic beverages was approved on its third reading by the full Legislature.
The rule states that all liquor manufactured or imported must also bear, attached or printed on its packaging, a label indicating that it is a domestic product or its country of origin, and the manufacturer's name, the name and type of liquor, the amount or liquid content and the degree of alcohol.
The Agrarian Development Institute (IDA) will expand existing facilities by constructing a new building.
New offices for the board of directors, president and management will be included at the new 1.600 square meter building, as well as an auditorium for 250 people.
"The new building is in addition to facilities the entity already has in Moravia”, reported Nacion.com.
The new regulation will set the value added tax at 8% and a specific duty of $0.09 per degree of alcohol for beers.
No new regulations are established for the distribution and sale of beer since the law states that this tax only applies to products with 6% abv or more.
"The reform also set a tax of $0.10 per liter on portable ethyl alcohol, whether produced domestically or imported, according to article 42-D," reports Laprensagrafica.com.
The bill sent to Congress will mean stores must have a license in order to sell beer.
El Salvador's current law stipulates the need for an operation license only for the sale of beverages containing more than 6% alcohol by volume meaning that beer is excluded.
With the proposed reforms, companies that sell beer will have to obtain the permit, the cost of which is planned to be $210 per year.
Beer imported from the US and Germany compete with with similar prices to those of local brands.
The entrance in effect of CAFTA-RD implied a tariff reduction of 15% to 11%, for U.S. beers. This tariff will be gradually reduced to 0%, at a rate of 1% per year. Currently, most imports come from Mexico and Nicaragua.
Even though in some cases foreign beer is sold at lower prices than domestic ones, it is generally more expensive.
The Costa Rican Constitutional Court accepted an appeal filed by the company La Florida SA, a subsidiary of Fifco, against IDA (Agrarian Development Institute) and the Administrative Fiscal Court.
Mercedes Agüero wrote in Nacion.com: "The company asked the judges to overrule the resolutions by the Administrative Fiscal Court which held in favor of IDA.
The Costa Rican Institute of Agrarian Development (IDA) is trying to charge this sum as the principal and interest on a debt acculumated through unpaid taxes.
IDA law establishes a tax of 5% on foreign and national beer and the differences in the manner of calculating the total amounts of previous years have motivated litigation and brought on the current situation.