Summary.
The bill amends Article 1057-V of the Tax Code (Código Fiscal), which establishes the Tax on the Transfer of Tangible Personal Property and the Provision of Services carried out in the Republic of Panama (República de Panamá). Within Paragraph 6, the reproduced provision retains the general rate of seven percent (7%) from July 1, 2010, and amends item 2 to set a twenty percent (20%) rate for imports and wholesale and retail sales of tobacco products. The products listed include cigarettes, cigars and other cigars.
The same article adds item 5 to Paragraph 6. The proposed provision applies the twenty percent (20%) rate to imports and wholesale and retail sales of electronic cigarettes and similar products, with or without nicotine. It also covers consumables, reservoirs or cartridges, containers for refill consumables, and the products described in the text as conventional heated tobacco products (PTC Convencionales) of oral nicotine (PNO). The bill thereby specifies the transactions and products covered by this rate under the tax.
Article 2 then adds item 18 to subparagraph a of Paragraph 8 of Article 1057-V of the Tax Code. That paragraph lists transfers exempt from the tax. The proposed item adds transfers of menstrual management products, defined as products designed to absorb, collect or contain menstrual flow. The list includes sanitary pads, tampons and menstrual cups, as well as other products of a similar nature. The proposed exemption applies regardless of the material from which those products are made.
Article 3 identifies the changes the bill would make to the Tax Code: the amendment of item 2 and addition of item 5 to Paragraph 6, together with the addition of item 18 to subparagraph a of Paragraph 8 of Article 1057-V. Article 4 provides that the proposed law would take effect on the day following its promulgation in the Official Gazette.
In terms of its subject matter, the bill concerns application of the Tax Code in the Republic of Panama. The proposed provisions would reach those who import or sell the products covered by the stated rates at wholesale or retail, and those who transfer menstrual management products. Sectors connected with its content include trade in tobacco products, electronic cigarettes and similar products, and the sale of menstrual management products.
What it proposes.
- Rates of the Tax on the Transfer of Tangible Personal Property and the Provision of Services.
- Imports and sales of tobacco products, electronic cigarettes and similar products.
- An exemption for transfers of menstrual management products.
Who it would affect.
- Importers of products subject to the twenty percent (20%) rate.
- Wholesale and retail sellers of those products.
- Persons who transfer menstrual management products.
Key points.
- Amends item 2 of Paragraph 6 of Article 1057-V of the Tax Code to apply the twenty percent (20%) rate to imports and wholesale and retail sales of tobacco products.Art. 1
- Includes cigarettes, cigars and other cigars among the tobacco products covered by that rate.Art. 1
- Adds item 5 to Paragraph 6 to apply the twenty percent (20%) rate to imports and wholesale and retail sales of electronic cigarettes and similar products, with or without nicotine, and the other listed products.Art. 1
- Adds to Paragraph 8 an exemption for transfers of products intended to absorb, collect or contain menstrual flow.Art. 2
- The exemption covers sanitary pads, tampons, menstrual cups and similar products, regardless of their material.Art. 2
- Identifies the proposed amendment and additions to Article 1057-V of the Tax Code.Art. 3
- Provides that the proposed law would take effect on the day following its promulgation in the Official Gazette.Art. 4