Colon to become duty free city

THE CITY of Colón is on the brink of becoming a duty free city as part of an economic incentives package delivered 23 years and four governments after it wa first proposed.

Residents would be entitled to shop in the stores, with purchases limited to $1,000 every six months for individuals, or $2,000 per family. Tourists would be able to shop there without limits.
The law governing the package has been approved by the cabinet and awaits ratification by the National Assembly.
Investors receiving benefits from opening businesses in the city would have to hire a percentage of workers from Colón. They would also have to preserve the culture and tourism in the area.
The proposed law would allow retail purchases, as opposed to the current Colón Free Zone, which markets to the wholesale market. Clothing, footwear, household appliances and electronics would be some of the products that could be purchased if the law is approved.
The reforms, were first proposed in the early 1990s.
The law also contains incentives for investment in the city, such as tax-exempt status and the ability to import equipment and materials used in construction.
Colón Chamber of Commerce President José de la Rosa Lam said that the law “is a very good opportunity for Colón, not only from an aesthetic point of view, but for its deep and sustained changes to the economic system.”
Severo Sousa, president of the Logistics Business Council (Coel), the success of this proposal will depend on the controls established to make it work effectively.
“You need to prevent people from using what should be for personal consumption for any commercial activity”, reports La Prensa.