{"id":12914,"date":"2026-04-27T09:10:00","date_gmt":"2026-04-27T14:10:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=12914"},"modified":"2026-04-26T08:50:11","modified_gmt":"2026-04-26T13:50:11","slug":"panama-committee-advances-bill-to-end-pink-tax-on-period-products","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/health\/panama-committee-advances-bill-to-end-pink-tax-on-period-products\/","title":{"rendered":"Panama Committee Advances Bill to End Pink Tax on Period Products"},"content":{"rendered":"

Panama’s National Assembly has taken a significant step toward eliminating the so-called “pink tax” on menstrual products. The Panama National Assembly<\/a> Committee on Economy and Finance approved Bill 505 in a first debate this week. The legislation seeks to exempt sanitary pads, tampons, and menstrual cups from the country’s 7 percent ITBMS sales tax.<\/p>\n

Independent Deputy Augusto Palacios, who represents the Vamos party, introduced the initiative. He stated the bill focuses on social justice and gender equity. The discussion quickly turned to a critical question: how will the government replace the revenue lost from this tax exemption?<\/p>\n

Official figures show roughly 1.2 million women of menstruating age live in Panama. The average monthly spending on menstrual products reaches $7 per woman. That translates to about $84 annually per woman, creating a total consumption market of approximately $101 million each year. The current 7 percent ITBMS tax generates around $7.1 million in annual government revenue from these products.<\/p>\n

Tax on Tobacco and Vaping Products Would Fund the Exemption<\/h2>\n

Deputy Palacios explained the bill includes a substitute revenue mechanism to offset the fiscal impact. The plan involves increasing the Selective consumption tax<\/a> on tobacco and nicotine products. The committee approved raising the tax rate on cigarettes from 100 percent to 105 percent. Palacios said this adjustment alone would generate an estimated additional $2.5 million per year.<\/p>\n

The bill also expands the list of taxed goods. It adds new products including heated tobacco, nicotine pouches for oral consumption, vaping liquids, and electronic cigarettes with built-in liquid, with or without nicotine. Specific rates apply: 10 cents per gram for heated tobacco, six cents per gram for nicotine pouches, and 15 cents per milliliter for vaping liquids and electronic cigarettes.<\/p>\n

Palacios defended this approach during the committee session. He argued the state should shift the tax burden toward products harmful to health. Essential items for women’s daily lives should not carry that weight, he said.<\/p>\n

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“The state must transfer the fiscal burden toward products that are harmful to health and not toward articles that are essential for the daily lives of women,” said Deputy Augusto Palacios. [Translated from Spanish]<\/p>\n<\/blockquote>\n

The tax adjustment includes a distribution plan. Fifty percent of the revenue collected from the tobacco tax will go directly to the National Oncology Institute, the Ministry of Health, and the National Customs Authority. Customs would use its share to strengthen efforts against smuggling.<\/p>\n

Bill Moves to Second Debate With Substitute Revenue Concept<\/h2>\n

The project now advances to a second debate before the full assembly. It introduces a formal substitute revenue concept. The Ministry of Economy and Finance must annually recognize an amount equal to the fiscal impact of the ITBMS exemption as ordinary income for the National Treasury.<\/p>\n

Civil society organizations voiced strong support during the committee discussion. Mar\u00eda Cristina Osorio, a spokesperson for groups working with vulnerable girls and women, insisted menstrual products cannot be treated as luxury goods.<\/p>\n

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“Menstrual management products are not optional. They are essential inputs for health, dignity, and daily life,” said Mar\u00eda Cristina Osorio, a civil society spokesperson. [Translated from Spanish]<\/p>\n<\/blockquote>\n

Osorio highlighted how the Pink tax<\/a> hits poor families hardest. She offered a concrete example. The tax a girl or adolescent pays in one year for menstrual products could cover 40 trips on the Metrobus system. It could also pay for 20 lunches costing 50 cents each at the University of Panama. These comparisons illustrate the economic weight menstruation places on low-income households.<\/p>\n

In families with multiple women, the monthly expense for menstrual products can rival school transportation costs. It can also take a significant bite out of the basic food basket. Osorio noted that neighboring countries have already acted. Costa Rica and Colombia have moved to eliminate or reduce taxes on menstrual products. Taxing these items creates an indirect form of economic inequality, she argued.<\/p>\n

Panama faces high poverty levels. A substantial percentage of the population lives in poverty or extreme poverty. Social organizations have documented cases in communities where women and teenagers use improvised materials. Rags, toilet paper, old socks, and even newspaper serve as substitutes for proper menstrual products. Osorio called this practice “inhumane.” It increases risks of infections and disease.<\/p>\n

The lack of access to menstrual products has direct consequences for education. Absenteeism among girls rises when they cannot afford proper supplies. The bill’s supporters argue eliminating the tax addresses both health and educational equity.<\/p>\n

Deputy Palacios emphasized the legislative process is far from finished. The bill requires approval in two more debates before reaching the president’s desk. He expressed confidence that the substitute revenue mechanism provides a sustainable solution. The tobacco and vaping tax increases offset the lost revenue while promoting public health goals.<\/p>\n

The committee’s approval marks a milestone in a broader regional trend. Several Latin American countries have reconsidered taxes on menstrual products. Advocates argue these taxes disproportionately affect women and perpetuate gender-based economic disparities. The debate in Panama reflects growing recognition that menstrual products are necessities, not luxuries.<\/p>\n

For now, the bill sits on the assembly floor awaiting its second debate. Lawmakers will continue examining the fiscal details and potential impacts. The outcome could reshape how Panama approaches both gender equity and tax policy. The asamblea nacional\/national assembly<\/a> will determine the next steps in the coming weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"

Panama’s National Assembly has taken a significant step toward eliminating the so-called “pink tax” on menstrual products. The Panama National Assembly Committee on Economy and Finance approved Bill 505 in a first debate this week. The legislation seeks to exempt sanitary pads, tampons, and menstrual cups from the country’s 7 percent ITBMS sales tax. Independent<\/p>\n","protected":false},"author":1,"featured_media":12913,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[33,30,34],"tags":[3966,3964,3965],"class_list":{"0":"post-12914","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-health","8":"category-business-economy","9":"category-living","10":"tag-menstrual-products","11":"tag-panama-committee-advances-bill","12":"tag-pink-tax"},"_links":{"self":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/12914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/comments?post=12914"}],"version-history":[{"count":1,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/12914\/revisions"}],"predecessor-version":[{"id":12915,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/12914\/revisions\/12915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media\/12913"}],"wp:attachment":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media?parent=12914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/categories?post=12914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/tags?post=12914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}