The president of Panama, José Raúl Mulino announced during his fourth press conference, just over 38 days after taking power, that one of his government’s key strategies to increase the State’s coffers will be to improve revenue collection through the General Directorate of Revenue (DGI).

Mulino clarified that this strategy will not imply an increase in the tax rate. Instead, it will focus on combating tax evasion, a problem that he recognized as significant in both income tax and ITBMS.

“The contraction of spending will not affect investments or the functioning of the country’s projects,” the president explained. “Coherent and orderly investments will continue, but the reductions will be made in a serious and serene way.”

The president also stressed the importance of these actions for risk assessors, who constantly monitor the fiscal seriousness of the Panamanian government. “We want to show that we are under a serious government that fulfills its fiscal commitments,” he said.

He added that the Minister of Economy and Finance, Felipe Chapman, has received clear instructions to reduce spending without affecting investments or the functioning of the projects. “Minister Chapman must be austere, but the investment will continue according to the budgetary flow of each ministry,” Mulino concluded.