The mayor of San Miguelito, Irma Hernández, raised questions about the handling of the Property Tax (IBI) during her participation in a subcommittee on Municipal Affairs, where reforms to the Decentralization Law are being analyzed in the National Assembly of Panama. “We are fighting to be able to have what the law already stipulates. The law already states that the Property Tax must be given in full to local governments,” the mayor stated.
Debate on Decentralization
The proposal comes amid discussions about possible changes to the Decentralization Law, a key regulation for the administration of funds in local governments. The mayor insisted that municipalities must receive the resources they are legally entitled to, as these funds are essential for:
- Community works
- Municipal services
- Local development
Property tax represents one of the main sources of financing for local governments, so its distribution has been a recurring theme in public debate. Hernández’s statement brings back to the forefront the need to review how these resources are being managed at the central level.