Panama has passed a law creating the Permanent Benefits Program for Retirees and Pensioners under the Invalidity, Old Age, and Death regime. The law also includes a modification to the Selective Consumption Tax (ISC) applied to alcoholic beverages.
According to the legislation, the new tax will be B/.0.065 per degree of alcohol content per liter of beverage, compared to the previous rate of B/.0.045. Various media outlets report that this law is already in effect, and brewing companies have announced price increases, stating that the adjustment is equivalent to approximately a 44% increase on the previous ISC.
Cervecería Nacional, for its part, informed that the layoffs were carried out in accordance with the Law and that the measure will not affect the production or distribution of its products. The Ministry of Economy and Finance (MEF) reiterated that during this government, no tax modifications have been implemented.
Increases in the selective consumption tax on alcoholic beverages were made during the governments of Juan Carlos Varela and Laurentino Cortizo, with the purpose of covering commitments related to pensions.
Law 438 of 2024, enacted on June 14 of that year, establishes that starting in the 2025 fiscal year, retirees and pensioners in Panama will receive an annual permanent bonus of B/.140.00, financed directly by the National Treasury.
In response to the statement issued by the company Cervecería Nacional regarding the reasons for the worker dismissals, the Ministry of Economy and Finance clarified that during the current government administration, no increases or modifications have been made to the rates or taxes administered by the Revenue Directorate.
The current administration specified that no tax increase has been approved, neither for companies producing alcoholic beverages nor for other economic sectors.
The company did not offer further comments on the statements made by the Government.
