PANAMA

On March 19, the Assembly’s Economy and Finance Committee passed the bill presented by Representative Zulay Rodríguez (Democratic Revolutionary Party – ruling party) in its first reading. The bill seeks to suspend the payment of tax obligations for 90 days.  The committee incorporated changes to extend the scope of some of its articles, and although the text containing the changes is still being drafted, it is expected to be sent to the assembly floor for debate soon.

Rodriguez’s bill seeks to guarantee “tax relief” to taxpayers, exempting them for 90 days from certain tax burdens. Among the obligations affected are:

• Mortgage loans granted by banking and financial institutions, both private and public.

• Commercial loans granted by banking and financial institutions, both private and public.

• All tax obligations of payment, retention, collection of taxes, fees and other national and municipal taxes.

In addition, the bill establishes that while the measures suspending obligations will last up to 6 months following adoption, banking and financial institutions may not increase interest rates on mortgage loans, commercial loans, commercial loans to the transport sector and agricultural loans.