Politics Economy Country 2026-01-29T07:09:41+00:00

ACP Contractors Must Pay Municipal Taxes

Representative of Cristóbal Ricardo Cerrud demanded that contracting companies working with the Panama Canal comply with municipal construction taxes, emphasizing that ACP's special status does not exempt them from these obligations.


ACP Contractors Must Pay Municipal Taxes

The representative of the corregimiento of Cristóbal, Ricardo Cerrud, demanded that the contracting companies linked to projects of the Panama Canal Authority (ACP) comply with the established municipal construction taxes by law.

During his intervention in a session of the Colón Municipal Council, Cerrud maintained that it is not fair that the works developed by the ACP in the province of Colón do not generate direct benefits for the communities, recalling that the special regime of the ACP does not exempt private companies from their municipal tax obligations.

The representative indicated that both the Political Constitution and the Municipal Code support the autonomy of municipalities to collect taxes within their jurisdiction, including those related to construction projects.

In this sense, he emphasized that the contracting companies that carry out works in Colón are obliged to comply with these taxes, as there is no express legal exemption that releases them from payment.

Cerrud also recalled that Law 19 of 1997, which organizes the Panama Canal Authority, clearly establishes that the ACP can hire private companies, but said companies do not acquire automatic tax privileges.

The contracts, he specified, must be executed in strict compliance with the current national and local laws.

The representative also defended the hiring of local labor, highlighting that in Colón there is trained and prepared personnel to participate in infrastructure projects.

“Colón cannot continue to see development pass by without participating in it,” Cerrud affirmed before the plenary of the Council.

To date, the Panama Canal Authority has not issued any comments or an official statement following Cerrud's statements made at this public municipal forum.