While some sectors related to the government sector, as well as financial capital, are celebrating growth Monthly Index of Economic Activity (IMAE) at 9.7% for the cumulative cycle version of the trend through February, there are other indicators that show major economic problems for the country.
If tax laws and structures do not change, tax collections should be expected to increase with economic growth. With that in mind, it is more than significant that it is The preliminary collection report for May, published by the General Administration of Revenue, shows that the cumulative collection of current revenues from January to May this year is 10.9% lower than the previous year.
In the case of tax revenues, the negative rate reaches 8.1% In search of a clue of the possible meaning of this situation, it is interesting to focus on those taxes that can mean weakness economic activity, as well as in the problems of tax evasion. This indicates ITBMS analysis – Tax on sales and profits of legal entities.
IN case ITBMS – Sales, if the collection from January to May of this year is compared with that realized in the same period in 2022, a decrease of about B/. 29.5 million, which represents a very significant drop of 8.6%. In the case of income tax, the situation is even more dramatic, as the drop in collection was B/. 82.6 million, which corresponds to a decrease of 29.0%.
There is, first of all, an assessment that economic activity is probably growing more slowly than was expected when the assumptions that led to the preparation of the state budget were made. It also draws attention to the fact that it is wrong to think that he is single indicator such as IMAEwhich also appears late, may in itself show the evolution of the level economic activity. The simple fact that the collection by Canal tolls and services show a decrease of 19.9% andCompared to the previous year, it shows some problems that need to be taken care of.
However, we must not ignore the problem of tax evasion, which has grown our economy. According to data published by DGI in his Tax statistical bulletin 2021, he non-payment of taxes, that is, the evasion of corporate income tax reached B/. 26,726.9 million, which is an amount equal to 9.2% of GDP.
Not only does the previous mass of evasion correspond to the corporate sector, because it is in charge legally retain ITBMS. In this case, DGI data for 2021 show the evasion of this tax of B/. 8,434.8 million, total which is equivalent to 2.4% of GDP. So, by adding up corporate income tax evasion and ITBMS, we arrive at a total evasion of B/. 35,161.7 million (11.6% of GDP).
The foregoing draws attention to the need for the country’s authorities to present a plan to resolve a difficult situation that may arise from an uncertain external context, which according to Nouriel Roubini indicates a mild contraction, which, however, could become deep. It is also essential that the state has a clear and precise state strategy aimed at combating tax evasion, which is basically generated by the corporate sector. Harm the environment and compromise national sovereignty for B/. The HRK 375.0 million mining concession is not the way. Evasion must be fought against.
Source: Panama America
I am David Miller, a highly experienced news reporter and author for 24 Instant News. I specialize in opinion pieces and have written extensively on current events, politics, social issues, and more. My writing has been featured in major publications such as The New York Times, The Guardian, and BBC News. I strive to be fair-minded while also producing thought-provoking content that encourages readers to engage with the topics I discuss.
