Panama’s new government is planning to reform its current gambling tax structure in its bid to attract foreign investors.
In its latest statement, the country’s Gaming Control Board (JCJ) has said that it would review the gambling tax frameworks and make the country’s gambling industry more investment-friendly for foreigners.
The key aspect of the current taxation policy which will be under review is whether to keep or let go the ‘5.5% tax on player winnings‘ applied across casino games, slot machines and sports wagering.
The review would be undertaken by the executive of newly elected President Laurentino “Nito” Cortizo of the ‘Democratic Revolution Party (PRD)’.
JCJ Secretary Manuel Sanchez and member of Panama’s Economic Ministry confirmed the review and said that the tax on the player winnings has been a road blocker for many foreign investors which in turn has negatively impacted the country’s tourism industry.
“The tax on gaming tables, is a tribute created in the past administration, which also applies to bingo, casinos, slot machines, and sports betting,” said the JCJ secretary of the Ministry of Economy and Finance (MEF),” said Sanchez.
“We will increase revenues and promote responsible gambling, this set of measures and others will help us to make this activity positively impact the country’s economy” Manuel Sánchez he added.