Panama: Tax-Free Zone Could Disappear
EspañolThe Colon Municipal Council in Panama has decided to abolish the law that excludes all businesses from taxation in the Colon Free Zone. Thirteen municipal representatives approved this measure, but the response from the Association of Users (AU) of the Colon Free Zone (ZLC) was swift in its opposition. AU denounced the illegality of this decision, since it goes against the 1948 Organic Law, which establishes the ZLC as a tax-free zone.
Surse Pierpoint, the AU legal adviser, accused this decision as out of order, since the ZLC is shielded against any tax payment legislation. In addition, Law 9, sanctioned in 1958, says that all municipalities that have international trade areas (also known as tax-free zones) won’t be able to tax any merchandise or products that are sold, rendered, stored or transformed in those areas.
Regarding Pierpoint’s claims, the councilmen who approved the reform, argued the decision to abrogate this law was simply made because time changes, and the Panama’s ZLC is no longer the same as 60 years ago.
Source: Prensa Latina.