Panama Specialists Want To Improve Tax Collection Without Raising Taxes Through Reform

(MENAFN- Newsroom Panama) Panama City, Panama: Following President José Raúl Mulino's statement that no fiscal adjustment or reform is being considered at the moment, several economists suggest that, while tax increases are not necessary, reforms are needed to improve tax collection efficiency. “We need to implement changes in tax terms to improve tax collection, in other words, there's a lot of tax evasion,” said economist Luis Morán. This, he adds, is related to the labor market, where it's essential to promote the formalization of workers so that both they and companies pay taxes appropriately.

Other experts emphasize that Panama needs“a fiscal, not a tax, reform,” as they believe current taxes are adequate, but collection is inefficient. They recommend the National Government review tax exemptions for certain economic sectors. “Although Panama has a low tax rate, revenue collection is not that good,” warns Morán, who suggests analyzing which sectors“have benefits that we need to review” to generate more revenue for the country. They agree that it is not necessary to increase the ITBMS (Tax on the Transfer of Movable Goods and Services). It is worth remembering that in 2024, Panama's spending exceeded revenue by 7.5%, constituting the country's fiscal deficit.

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