Panama, November 2, 2001 – The Panama Canal is important for Panama’s economy, as it benefits all Panamanians. Aside from the direct contributions it makes to the National Treasury as payments per net ton that transits, rates for utility services, and dividends, the operation of the waterway also produces indirect contributions in the form of payments of employee income taxes1, social security fees2, and educational insurance3. In fiscal year 2001, the Canal paid $113.0 million to the National Treasury in indirect contributions. For fiscal year 2002, these contributions are estimated in $114.2 million.
The Canal paid $51.1 million to the National Treasury in income taxes during fiscal year 2001. It is estimated that for fiscal year 2002, Canal income tax contributions to the Treasury will be $51.6 million. Canal contributions for 1999 and 2000 represented 9.2 percent and 12.2 percent, respectively, of the total revenues received by the Panamanian Government in income taxes.4
In Social Security fees, the Canal contributed $54.3 million in fiscal year 20015. It is estimated that for fiscal year 2002, the waterway will contribute $54.9 million to the National Treasury in Social Security fees. Contributions for fiscal years 1999 and 2000 were 6.8 and 8.6 percent, respectively, of the total revenues collected by the Social Security System in labor-management contributions and occupational hazard premiums in the country6.
In educational insurance, the Canal contributed $7.6 million to the National Treasury during fiscal year 2001. Projections indicate that Canal contributions will increase to $7.7 million in fiscal year 2002. Contributions for fiscal years 1999 and 2000 were 10.5 and 19.8 percent, respectively, from revenues collected by the Government in educational insurance7.
Indirect contributions made by the Canal to the National Treasury during fiscal year 2000 showed an increase compared to 2001, as a result of the payment of accrued leave by employees after the closing of the Panama Canal Commission. As a result, payments of income taxes, social security, and educational insurance fees registered a substantial increase that year.
The Canal in Panamanian hands is committed to continue being an important artery for international trade and a catalyst for national development. As the business of the Canal increases, contributions to the National Treasury will increase. Providing high quality, efficient, expedite, safe, and competitive transit service and keeping up with technological improvements, will translate into economic benefits for Panama.
1 Income tax: represents between 17% and 33% of the employees’ salaries.
2Social Security: includes management contributions (1.5%) and employee contributions (1.25%).
3 Educational insurance: includes management contributions (1.5%) and employee contributions (1.25%).
4Income tax: $508.4 million (1999) and $494.2 (2000) (P). Summary of revenues received by the Government, according to class: years 1996 – 2000. Statistics and Census Bureau, Office of the Comptroller General of Panama.
5Social Security: includes management contributions.
6Social Security: $632.3 million (1999) and $746.8 million (2000). Social Security System. Bureau of Revenues. Department of Collection and Treasury.
7Educational Insurance: $32.4 million (1999) and $36.4 million (2000) (P). Summary of revenues collected by the Panama Government according to class: years 1996 – 2000. Bureau of Statistics and Census, Office of the Comptroller General of Panama.