Panama: Beer, other alcohol prices to increase in July

Some companies that produce beer and other alcoholic beverages in Panama have notified merchants that in the month of July there will be an increase in the prices of these products as a result of the increase in the Selective Consumption Tax (ISC) on these products, FreshlyBottled.com reported on July 2.

Analysts predict that the increase in prices will affect sales of alcoholic beverages in stores, bars and restaurants. This could decrease the purchasing power of consumers and negatively affect entertainment and tourism activity.

The statement from Cervecería Nacional that informs its customers about this change, explains that the measure responds to the new tax legislation, which will directly impact the production and distribution costs of beverages.

However, beer saw a 2.6 percent increase in consumer prices in April. According to data from the Ministry of Economy, the alcoholic beverages sector already contributes significantly to the country's economy, generating 1.4 percent of the gross domestic product (GDP).

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