Colón authorities seek to modify Law 404 for increased provincial resources

Authorities in Panama's Colón province are advocating for amendments to Law 404, seeking a larger portion of the revenue generated by the Colón Free Zone (ZLC). The initiative stems from a request by council members to revise the law and the integral development plan for the ZLC, aiming to channel more resources into the province.

Currently, Law 404 mandates an annual contribution of $6 million from the ZLC's non-tax revenues for infrastructure projects in Colón. Of this amount, $3 million is designated for the Colón district and the remaining $3 million for other districts within the province. However, provincial leaders propose establishing a governance framework that would allow local governments to actively participate in the management and distribution of these funds.

"We are new elected authorities who are in favor of all taxes that reach the province of Colón. We do not agree that taxes should only be collected by the province of Panama," stated Carlos Lima, president of the Municipal Council. He emphasized that the proposal would extend beyond the Colón district to encompass all 43 "representantes de corregimiento" (local representatives) across the province, recognizing their shared needs.

Luisa Napolitano, manager of the Colón Free Zone, acknowledged the need to regulate Law 404 and pledged her participation in the process to ensure the proper utilization of funds. "Law 404 needs to be regulated. We will sit down and review it responsibly, but anything that benefits Colón, I will be a watchdog to ensure things are done correctly," she affirmed. Provincial authorities, including four of the five deputies, council members, and the mayor of the Colón district, have agreed on a roadmap to push for legal modifications and secure greater resources for the province's development.