CCIAP calls for a thorough review of Law 122 on tourism investment incentives
CCIAP recommends reviewing the scope of Law 122 to orient it to the eight areas of interest defined within the Master Plan for Sustainable Tourism 2020–2025.
The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) indicated this Sunday the need to carry out a review of Law 122 of 2019 that establishes incentive rules for the promotion of tourism investments in Panama.
"As a union we support and promote initiatives aimed at stimulating it ( tourism ) and ensuring its competitiveness compared to other destinations, but without ceasing to recognize that the interests of the country, as a whole, must take precedence over individual and even sectoral interests. In this context, after an in-depth analysis process, we have concluded that Law 122 of 2019 on incentives for the promotion of tourism activity requires a thorough review by the Executive Branch," says the CCIAP in its Sunday statement The Chamber Give your opinion.
Among the aspects that must be reviewed, he mentions the contemplation of presenting fiscal studies that measure the impact of the projects that would obtain the benefit, before which the Ministry of Economy and Finance (MEF) must establish ceilings according to its capacity to absorb the corresponding tax sacrifice.
“To begin with, we recommend reviewing its scope in order to orient it promptly to the eight areas of interest defined within the Master Plan for Sustainable Tourism 2020–2025. In addition, differentiate between tourism product and hotel development, and those real estate or residential projects that, rather than helping tourism, could pose unfair competition to the sector,” says the union.
He adds that it is also necessary to review the requirements and obligations, in addition to the terms of inspection and sanctions, they must be clearly stated, as well as if the tax credits are going to be granted at the beginning of the work, it is vital that the developer present performance bonds, in addition to feasibility and feasibility studies, certifications or audits by qualified professionals.
“Likewise, mechanisms must be established to measure the social impact in terms of direct and indirect job creation, a multiplier effect of investment and benefit in the communities. Finally, since they are public funds, all the information and elements that are submitted for consideration for the application of the tax credit must be of a public nature,” adds the CCIAP.
"As a union we support and promote initiatives aimed at stimulating it ( tourism ) and ensuring its competitiveness compared to other destinations, but without ceasing to recognize that the interests of the country, as a whole, must take precedence over individual and even sectoral interests. In this context, after an in-depth analysis process, we have concluded that Law 122 of 2019 on incentives for the promotion of tourism activity requires a thorough review by the Executive Branch," says the CCIAP in its Sunday statement The Chamber Give your opinion.
Among the aspects that must be reviewed, he mentions the contemplation of presenting fiscal studies that measure the impact of the projects that would obtain the benefit, before which the Ministry of Economy and Finance (MEF) must establish ceilings according to its capacity to absorb the corresponding tax sacrifice.
“To begin with, we recommend reviewing its scope in order to orient it promptly to the eight areas of interest defined within the Master Plan for Sustainable Tourism 2020–2025. In addition, differentiate between tourism product and hotel development, and those real estate or residential projects that, rather than helping tourism, could pose unfair competition to the sector,” says the union.
He adds that it is also necessary to review the requirements and obligations, in addition to the terms of inspection and sanctions, they must be clearly stated, as well as if the tax credits are going to be granted at the beginning of the work, it is vital that the developer present performance bonds, in addition to feasibility and feasibility studies, certifications or audits by qualified professionals.
“Likewise, mechanisms must be established to measure the social impact in terms of direct and indirect job creation, a multiplier effect of investment and benefit in the communities. Finally, since they are public funds, all the information and elements that are submitted for consideration for the application of the tax credit must be of a public nature,” adds the CCIAP.