Incentives for Recycling Companies

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Incentives for Recycling Companies

In Panama, a bill that establishes exemptions for those natural and legal persons specialized in the operation of industrial recycling plants was approved in the third debate.

Friday, April 16, 2021

The purpose of this new regulatory framework is to stimulate with environmental tax benefits the establishment of recycling companies, which do not exist in Panama, seen as an ideal process to end the problem of garbage accumulation in the country, informed the National Assembly.

Considering that there is a commitment to legislate for the environment, the plenary session made viable, in third debate, Bill # 537, which establishes environmental incentives, proposed by Congressman Edison Broce, according to the official press release.

Bill 537 establishes exonerations for those natural and juridical persons specialized in the operation of industrial recycling plants, as a mechanism to solve the garbage problem in Panama, the document highlights.

Broce added that "... when the regulation materializes, it will generate millions of dollars, jobs, investment and training for thousands of Panamanians in such difficult times where unemployment is very high. At present there are no garbage recycling companies in Panama. It is necessary to differentiate between a collection center for recyclable material and a recycling industry, whose job is to transform the disposable into new products."

 

https://www.centralamericadata.com/en/article/main/Incentives_for_Recycling_Companies

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Incentives Law for Recycling Industry

On June 8, Law 223 was published in Panama's Official Gazette, a legal framework that establishes environmental tax exemptions for the recycling industry; these incentives will take effect as of 2022.

Monday, June 14, 2021

The purpose of this legal framework is to promote sustainable business practices, the reconversion of companies and the development of the recycling industry in the country.

Article 4 details that "... natural and legal persons that reconvert their activity, replacing their plastic products with biodegradable materials that do not contain plastic, and are duly endorsed by the Ministry of Environment will enjoy the following benefits for a period of five years:

1. Exemption from import taxes on equipment and machinery.
2. 15% discount of the income tax."

The incentives of this Law shall not be applicable to natural or juridical persons whose replacement materials are synthetic plastic options labeled as degradable, biodegradable, oxo-biodegradable, bioplastic, bio-based, recycled or any other plastic derived from petroleum and other hydrocarbons.

Legal entities engaged in the collection of recyclable materials for export are not eligible for the exemptions either. Recycling must take place directly within the territory of the Republic of Panama, according to the text of the law. See publication in the Official Gazette.

 

https://www.centralamericadata.com/en/article/main/Incentives_Law_for_Recycling_Industry