Panama Companies that Fail to Comply with Discounts for Retirees Could Receive Fines of Up to $10,000.

Businesses and establishments that do not comply with the established discounts for retirees, pensioners and senior citizens could face penalties of up to $10,000 with ACODECO monitoring, according to Bill 226, approved in the third debate by the National Assembly.  The initiative, approved with 47 votes in favor, modifies and adds articles to Law 6 of 1987, which establishes benefits for retirees, pensioners and senior citizens.

Retirees and Pensioners: There are new products and services that would have discounts of up to 30%.  The project seeks to expand the products and services included within these benefits and establish mechanisms to ensure that establishments comply with the discounts.

What Discounts Does Bill 226 Include?

The proposal expands the benefits for this population and includes discounts on a wide variety of products and services. The following are among those being considered:

• Medications.
• Medical care.
• Surgeries and treatments.
• Hospitals and clinics.
• Private laboratories.
• Imaging centers.
• Orthopedic devices.
• Walking sticks, wheelchairs, crutches, and walkers.
• Restaurants.
• Cable and Internet services.
• Credit and debit cards.
• Insurance policies.
• Water consumption.
• Health and hygiene services.
• Mortgage loans.
• Air tickets.
• Cleaning fee.
• Recreation and transportation activities.

The initiative seeks to update the benefits originally established in the legislation and expand their scope in light of the rising cost of living faced by many older adults.

What Happens to Companies that Do Not Comply?

One of the aspects that generates the most interest is the establishment of sanctions for those who fail to comply with the benefits established in the regulation.  According to the approved project, fines could reach up to $10,000, with the purpose of ensuring that the discounts effectively reach the retirees, pensioners and senior citizens who are entitled to them.

Benefits Would be Applied as a Tax Credit.

Another component of the proposal is that the discounts granted by taxpayers may be considered within the tax credit mechanisms of the Income Tax, in accordance with the provisions contemplated in the initiative.  During the debate, the deputies pointed out that the proposal responds to a social policy aimed at improving the economic conditions of older adults and recognizing their contributions to society.

Although Bill 226 has already been approved in the third debate, it must still complete the corresponding legislative process before becoming a current law.  The initiative modifies Law 6 of 1987, considered one of the main legal instruments for protecting the benefits of retirees, pensioners and the elderly in Panama.