Contacting the government about the 20 year tax exemption

In an effort to head off the disasterous (to investors and the country of Panama) end of the 20 year tax exemption, I contacted Sam Taliaferro about it and asked to whom in the government we might plead our case.

He suggested e-mailing the vice minister of international trade, Carmen Gesela Vergara, who is sympathetic to our cause and understands it. She may be e-mailed at cgvergara@mici.gob.pa.

Mick @ Lot 83
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Updated 8/9/07

My letter to Ms. Vergara:

Dear Vice Minister,

I am writing as an investor in the Red Frog Beach Club development on Bastimentos and want you to know that I support your efforts to change the government’s course regarding the end of the 20 year tax exemption. To those of us who chose to invest in Panama so as to eventually retire there, this is a huge issue and could affect many of us financially should the tax go back into effect. It could also affect other people’s decision to buy property in Panama at all.

As a student of economics, what many governments fail to realize (US is probably the worst with its onerous taxation) is that the harm which comes by taxation, meant to do good, is not seen for several years. By the time it is seen, it is too late to reverse. The favorable tax laws have a profound impact on the sudden growth and popularity of Panama. To make that go away at the end of the year will hurt the economy more than I can describe, maybe not immediately, but in the long term.

Please stress to your peers that by continuing the exemption, it will attract investors to Panama who will dump loads of money into the economy by way of purchasing homes, boats, cars, etc. which will result in higher standards of living in areas such as Bocas.

I am pleading with you to make our case, and I hope to be able to meet you one day as we sit on the beach at Red Frog. Thank you for your time.

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Her reply:

Thanks so much for your mail. The Government of Panama is reviewing all of its policies to better attract foreign direct investment.

I am sure that with the help and encouragement of investors such as yourself, we will realize our goal to make Panama a preferred destination for tourist and for retirees alike.

When you come to Panama, please let me know, as I will be very happy to meet you personally and share with you some of our plans for the economic development of our country.

Best regards,

Carmen Gisela Vergara
Viceministra de Comercio Exterior
Ministerio de Comercio e Industrias
Tel: 560-0655 / 560-0656 (fax)
e-mail: cgvergara@mici.gob.pa
web: www.mici.gob.pa