An increase in Panama “sin” tax to help the poor

(newsroompanama.com) The cost of living in Panama is may soon to take another hike, depending on your relaxation habits, but this time it will be for a worthy cause, so raise a glass to Panama’s jubilados (retirees).

Looking for a way to find the money to fulfill an election campaign promise of an increase in the paltry pensions of retirees, the government is mulling over the tax on alcohol.

If a frothy cool one or more is part of your daily diet, look to a minimum of a 5 cents a bottle increase on local brews.

This according to Minister of Economy and Finance, Alberto Vallarino, who said raising the sin tax is one of the options being considered to provide an estimated $25 million to $30 million for pensions.

If you’re into the stronger stuff the increase gets more complicated, as the tax is dependant on the alcohol content. Vallarino said.

An increase in the price of whisky, would be higher than that of rum due to the alcohol level of each, he said, which, roughly translated, means that imported hard drinks will cost more than those produced locally. No mention of the alcohol difference between a strong imported beer with flavor, and watery local suds.

So drink up, and remember, that each time you down one, you are helping the less fortunate who, in turn, may see part of their increase swallowed up.

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Original Source: Newsroompanama.com

Date Retrieved: November 26, 2010.