ITBMS To Rise From 5% to 7%

(Panama-Guide) - Source: Panama America - Inflation and a decline in purchasing power is what is expected with the new tax reforms announced by the Government, especially those that indicate an increase from 5% to 7% in the ITBMS sales tax, funds that will be allocated to pay for improvements in public safety and security and to pay for the Universal Fellowship program. "If the government increases the ITBMS from 5% to 7% the amount of money collected would increase by 40%, which means the government would collect an additional $240 million dollars per year from this tax increase alone," said economist and partner in BDO Panama, Aristides Hernandez.