national

Torrijos pledges to reduce taxes

In an address to the nation, the president also highlighted the recent economic growth and promised better security.

Jorge Fernández/la prensa

Martín Torrijos992065

Nine days before the internal elections of the Partido Revolucionario Democrático (PRD) and 16 months before the end of his term, President Martín Torrijos presented a list of promises during his speech at the opening of the Asamblea Nacional, which convenes twice a year.

Torrijos praised the country’s economic growth, stating that "it is palpable, and it can be felt and perceived inside and outside Panama."

While this growth has also increased inflation, Torrijos said that he will address this problem by undertaking a series of fiscal measures that will reduce the tariffs on some imported goods. This, he said, should lower prices for consumers.

He also pledged to take measures to counter the crime wave that has swept through the country in recent months.

The issues of security and inflation are the main concerns of residents, according to a survey commissioned by La Prensa. The issue of security was one of the primary platforms of Torrijos's presidential campaign in 2004.

His speech to the Asamblea, however, focused much more on the economy than on the crime rate. The president pointed out that the country’s economic growth rate has been among the highest in the world during the past three years.

He said the main factor driving the nation’s economic growth is the construction sector, which grew by about 20 percent in the past two years.

He pointed out that the country’s unemployment rate fell from 11.8 percent to 6.4 percent last year.

During his speech, Torrijos recognized the existence of a fiscal inequity in the country, which he promised to address by submitting a tax reform bill to the Asamblea Nacional. The bill, Torrijos said, reduces the income tax of the 40,000 people who earn between $800 and $860 a month.

Torrijos said the measure will address the problem that some workers encounter when they begin earning enough to pay income tax.

Under the current system, a worker may actually end up earning less when he or she receives a pay increase, something Torrijos is planning to address.