Panama faces internal and external pressures to increase revenue, but its room for maneuver is limited. The Panama Government has proposed mandatory ethanol blending in gasoline and tax changes. The Minister of the Presidency, Juan Carlos Orillac, presented a bill to the full Assembly to amend articles of Law 42 of April 20, 2011, and the Tax Code, necessary for granting permits for the Biofuels Program and regarding taxes. Bill 443 proposes to make the blending of ethanol in gasoline mandatory, prioritize domestic production, and modify fuel consumption taxes. Panama earned $4.916 billion in 9 months, attracting more than 2.14 million visitors. The number of tourists—defined as those who stay in the country from one day to less than 12 months—reached 1.71 million, representing a growth of 10.1% compared to the 1.55 million recorded in the first nine months of 2024. Despite increased tax revenue, Panama enters 2026 with fiscal weaknesses. Javier Mitre, a tax attorney, indicates that the major challenge for 2026 will be achieving fiscal sustainability without eroding the country's competitiveness.
