Exonerations And Tax Cuts To Keep Fuel Prices Down

(Panama-Guide) The government of Panama approved a reduction of 25 cents in taxes for for 91 octane gas and diesel, as well as a price freeze for these products to prevent further increases. The Minister of Economy and Finance, Alberto Vallarino, said the measure will continue for 90 days by freezing the price at $3.99 a gallon for 91 octane gasoline, and $3.80 a gallon for diesel, however, if within 60 days the trend in the price for a barrel of oil keeps rising, there will be a new alternative proposal to be approved by the Legislature. The 25 cent tax on 91 octane gasoline, which accounts for 40% of the fuel tax, and the exemption of the same with respect to both gas and diesel, the state would no longer receive $8 million dollars per month. Vallarino also announced the approval of the installation of a commission to review the minimum wage, which is held every two years. Had the government not adopted these measures, this week diesel would have increased 16 cents and 91 octane gasoline 15 cents. The Chamber of Commerce applauded the decision of the Cabinet Council to evaluate with more time the measures to take with respect to the increasing costs of fuel. "More than 200,000 families have cable television service, and for every Panamanian there exists an average of two cellular telephones, so the Cabinet has pondered this and has sought other alternatives," said Federico Humbert, president of the guild.

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Original Source: Panama-Guide.com

Date Retrieved: April 21, 2011.