San Miguelito Mayor Irma Hernández Questions the Use of IBI Funds
What about the rest? Mayor Irma Hernández questions why only 80 out of 200 million in property tax revenue reaches municipalities.
The mayor of San Miguelito, Irma Hernández, raised questions about the handling of the Property Tax (IBI) during her participation in a subcommittee on Municipal Affairs, where reforms to the Decentralization Law are being analyzed in the National Assembly of Panama. “We are fighting to be able to have what the law already stipulates. The law already states that the Property Tax must be given in full to local governments,” the mayor stated.
Irma Hernández’s Complaint Regarding the Distribution of Funds
Hernández pointed out that the central government currently collects about $200 million in property tax, however, only about $80 million is transferred to local governments. “What about the rest?” she asked, highlighting the municipalities’ concern about the lack of access to these resources.
Debate on Decentralization
The proposal comes amid discussions about possible changes to the Decentralization Law, a key regulation for the administration of funds in local governments. The mayor insisted that municipalities must receive the resources they are legally entitled to, as these funds are essential for:
- Community works
- Municipal services
- Local development
Property tax represents one of the main sources of financing for local governments, so its distribution has been a recurring theme in public debate. Hernández’s statement brings back to the forefront the need to review how these resources are being managed at the central level.
