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- 03/09/2009 02:00
COLON. Government pressure on the Colon Free Zone (ZLC) is increasing with full page adverts appearing in national newspapers denouncin...
COLON. Government pressure on the Colon Free Zone (ZLC) is increasing with full page adverts appearing in national newspapers denouncing the business men who, the government says, earn millions of dollars but pay nothing in taxes.
The adverts appeared as representatives of the ZLC User’s Association (AU) unexpectedly cancelled their strike which was due to take place yesterday.
According to the AU’s Jorge Punjabi, the strike was called off after a phone call from vice-president Juan Carlos Varela indicated that the government wants to negotiate.
However, the government spokesman, Jimmy Papdimitriu, denied that Varela made the call. He said the AU called off their strike because they “did not have the full support of the majority of users who are aware that striking is an unpopular measure to take”. The AU had previously said that they were backed by the Business Council and Cargo Transport Workers of Colon.
Papadimitriu said that the government would go ahead with their proposals to tax the ZLC because it “reports million of dollars of earnings annually but the businessmen there do not pay a cent in taxes”.
Punjabi said that AU representatives will meet on Friday with the president, Ricardo Martinelli, the Minister of Economy and Finances, Alberto Vallarino, the Minister of Commerce and Industry, Roberto Henriquez and Jimmy Papadimitriu to discuss the new taxes.
However, government spokesmen could not confirm if the meeting will take place. What is certain is that the Treasury was meeting yesterday with members of the AU to continue to discuss the controversial budget adjustment projects which aims to raise $225 million.
The AU are disputing the government’s proposal that $140 million of this will be paid by them in taxes on their members’.
They say that this would reduce the competitiveness of the ZLC and may mean that Colon businesses would move to the Panama-Pacific Special Economic Area that is under construction at the old Howard Air Force base at a cost of more than $705 million.
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