Supreme Court provisionally suspends city tax increase

The Third Chamber of Administrative Litigation of the Supreme Court provisionally suspended the seventh, eighth, and ninth articles of Municipal Agreement 142 of 2022, through which taxes were increased in the district of Panama.

The decision comes in response to a claim for annulment claim filed by the lawyer Ernesto Cedeño

In their decision, magistrates Carlos Vásquez (rapporteur), Cecilio Cedalise, and María Cristina Chen questioned the legality of the agreement could cause “harm to the community” since it would affect the economic situation of the inhabitants and is surrounded by certain elements that could “affect its legality”.

In addition, on Friday, the Administration Attorney, Rigoberto González, asked mayor José Luis Fábrega for an explanatory report on whether he carried out a public consultation or gave participation to the community regarding this tax adjustment.

Before it became known that the Supreme Court ordered the provisional suspension of the  Agreement, the Municipal Council of Panama and the mayor of the capital had ignored the growing voices that asked to leave without effect, the increase in taxes in the district of Panama.

Municipal Agreement 142, which entered into force on January 1 of this year, was rejected by the Chamber of Commerce, Industries, and Agriculture and by the Panamanian Association of Business Executives (Apede).

Both organizations requested the immediate suspension of the l agreement because it was not consulted with taxpayers and the business sector.