No to Double Taxation for Cruise Ship or Air Passengers in Colon.

The agreement seeks to charge $5 to non-national travelers and visitors entering or disembarking at the district’s port, airport, or sea terminals. The district’s mayor, Lorenzo Diógenes Galván did not approve of the proposal.

The municipal agreement No. 101-40-16 established a so-called “Use, cleaning and safety fee” on September 15, 2026.

The agreement did not detail how much the supposed service costs per user, which municipal department would be in charge, or how the amount would be distributed between cleaning, security, and use of the facilities. Galván objected to its suitability and questioned why the document does not explain precisely what municipal service each person would receive in exchange for payment.

Another concern is the potential for double taxation. The mayor argued that the entry and transit of people through the national territory involves matters regulated by central government authorities. For example, the Colón City Hall cited the case of the Municipality of Barú, which established a so-called “tourist service seal” for travelers.

The Third Chamber of the Supreme Court of Justice later declared that fee illegal.

“Shipping companies measure every penny and every cost,” said Nadkyi Duque, president of the National Chamber of Tourism of Panama. She believes that a new charge could influence companies’ decisions about their routes and stops.

Duque, maintained that the decision was made without consulting the private sector and warned that it could reduce the country’s competitiveness compared to other Caribbean ports.