Panama- Restriction on six-pack sales hits industry and taxes

2020-06-14 11:34:46

(MENAFN- Newsroom Panama) The lifting of restrictions on the trade-in alcoholic beverages would kill the illicit increase in the illicit market for and produce tax revenue for the government says The Industrialists Union (SIP) a group representing the industry. Beer industry sales, for example, have fallen more than 50% and they still have around $30 million in finished product inventory in warehouses and retail stores.

The losses of the industry and the contributions to the state coffers could be millions, the SIP estimated.

'The purchase restriction measure of a six-pack of beer makes inventory turnover slow, especially the returnable bottle packaging, whose transaction is per box and cannot be executed. Beer is a perishable product and if the inventory in question were to expire, the losses would be irrecoverable, said the president of the union, Aldo Mangravita. The alcoholic beverages industry represents approximately 1.3% of the national GDP and generates approximately $ 125 million annually to the treasury as Selective Consumption Tax (ISC) and ITBMS.

It is estimated that for each week of restriction on the sale of alcoholic beverages, the Panamanian State stops receiving approximately $ 2.4 million in these two taxes alone, apart from other taxes paid by the industry such as ISR, Import Tax, CSS, among others. , according to Mangravita.

He also warned that if the restriction on the purchase of alcoholic beverages continues to be prolonged, it will be "unsustainable" for the industry to keep all jobs. The alcoholic beverage industry contributes more than 6,000 direct and 40,000 indirect jobs, which "could not be guaranteed" if the restriction on the purchase of alcoholic beverages for consumption at home is prolonged,

'The release of home consumption sales would allow consumers to continue to acquire formal products through formal channels without restrictions, maintaining jobs, tax collection and eliminating the incentive for illegal trade and contraband, particularly adulterated and prepared drinks. homemade ,

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