A bill which has already been approved in second debate provides for production incentives, which vary depending on whether the companies are engaged solely in the local market, the international market or both.
From a statement issued by the National Assembly of Panama:
Bill No. 285, amending an article of Law 28 of 1995 on Universal Incentives for Production was approved on its second reading by the plenary of the National Assembly
The Minister of Trade and Industry (MITI), Meliton Arrocha said that incentives vary depending on whether the companies are engaged solely in the local market, the international market or both.
The benefits for companies that only engage in export are exemption of 100% of the fees, that is, the introduction tax, ITBM on imports of machinery, equipment and spare parts used in the process of introduction .
Are politicians really that stupid. Why just companies that export, they do not want the people of Panama to have goods manufactured in Panama? They like to see the Panamanian people paying high prices for things that are made in Panama. So now if a company wants the tax benefits and the Panamanian people want some of the products the company would make the product export it they the Panama retail market would buy it from the company that bought it from the Panama Manufacture and import it and than sell it for close to double what it costs in the foreign country There Often this will not even happen and the people of Panama will not be able to afford the products they make and will do without, there will be less Panamanians employed and thus less taxes going to the government The law is a good start but Any tool that increases the productivity of a group of people is a very good thing. Tools that increase productivity of a group of people or country should be allowed into the country tax and fee free. They are used to increase productivity. They could simplify the law have less government workers and more people employed in productive area and an over all richer country, better quality of life for everyone in Panama and more tax revenue and more government surplus, simply by doing the new law correctly and complete to exempt all equipment for manufacturing facilities. This problem with mentally limited characteristic of politicians is not a Panama things and it seems to effect politicians world wide.