Panama's enterprises protest against government's tax plan
(news.xinhuanet.com) Entrepreneurs from the Colon free zone at the mouth of the Panamanian Canal on Wednesday staged a protest against a newly approved tax plan.
The tax plan, boosted by the National Assembly, was aimed to collect more than 100 million U.S. dollars per year.
Panamanian Presidency Minister Jimmy Papadimitriu said the government of President Ricardo Martinelli is open to dialogue, but the tax plan will continue.
"That money is needed for a dignified transportation, security and to reduce the basic basket (price)," Papadimitriu said.
Giovanni Ferrari, president of the free zone's Users Association, said these measures put on risk to the competitiveness of companies in the zone.
Founded in 1947 with 50 hectares of land of the city of Colon, at the entrance of the Atlantic Ocean, the free zone now is a major world export center of 500 hectares with over 14,000 employees in 2,600 companies.
Ferrari said the protest was aimed at making the government rethink the impact this tax adjustment will bring to the free zone, for example, the employment reduction.
Companies in the free-trade zone do not pay corporate income tax. Thanks to its tax free system, the zone reported profits for re-exportation of over 1.5 billion U.S. dollars last year, of which only 62 million U.S. dollars, or 4 percent came to the State.
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Original Source: http://news.xinhuanet.com/english/2009-09/03/content_11989414.htm
Date Retrieved: September 4, 2009.
