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Panama’s Ministry of Economy and Finance (MEF) has published the reviving of the Lotería Fiscal (Fiscal Lottery) or public scheme for voluntary tax fulfillment through citizens’ participation. It traces its roots back to the late 1990s, and the Fiscal Lottery now returns under its Decree No. 26, published and sanctioned by the MEF following approval by the Gaming Control Board (JCJ).
The Fiscal Lottery is designed to promote a culture of requesting invoices on acquisitions, a culture over the years likely to increase national tax revenue with minimal political resistance.
Structure and Timeline of the Fiscal Lottery
The MEF will run a minimum of four draws a year, with each draw having an aggregate prize pool of USD 110,000. These will be distributed among 25 winners per draw, with extensive coverage for the incentive. The first draw is expected to be held in August 2025, after months of organizational setup.
Each of the participants should be provided with an envelope containing five legitimate receipts or invoices. The invoices must be printed on state-approved fiscal printers or electronic invoices on paper in printed format. The company name, its RUC (Registro Único de Contribuyentes), verification digit, payment object, total value, and tax charged must be displayed on the invoices. The issue date should not exceed two months before the draw.
Surprisingly, players may submit multiple envelopes and win multiple times within the same draw. Prizes will be awarded as follows:
- 5 prizes of USD 10,000
- 10 prizes of USD 5,000
- 10 prizes of USD 1,000
All prizes are tax-free and can be redeemed within three months of the date of the draw.
Random Inspections and Oversight
In addition to selecting winners, the Dirección General de Ingresos (DGI) shall also randomly inspect 15 other envelopes per draw. The inspection is meant to verify submitted invoices as authentic and in conformity. But the inspections are not actual audits, as noted by Minister Felipe Chapman.
“This review process ensures the authenticity of invoices and overall integrity of the Fiscal Lottery without necessarily leading to formal tax audits,” Chapman elaborated. The surveillance will examine primarily the overall compliance of participants with the procedural requisites of the lottery, including—but not limited to—the proper application of the ITBMS (Impuesto a la Transferencia de Bienes Corporales Muebles y la Prestación de Servicios).
Expected Impact and International Inspiration
The primary purpose of the Fiscal Lottery is to raise tax revenues by encouraging consumers to request and submit legitimate receipts on most transactions. Chapman mentioned that similar initiatives in Brazil, Portugal, and Colombia have caused substantial revenue gains, on tax—9% to 75%.
“Applying these international standards, conservatively Panama’s Fiscal Lottery can generate 7% to 15% growth in tax revenues“, he added.
The pay structure—awarding large, medium, and smaller cash prizes—was designed so that the game will be financially sustainable while encouraging widespread public buy-in. “The combination of high-value rewards and more winners will be looked at to make it more accessible to more people“, Chapman said.
Historical Context and Regional Precedents
Panama used to run a Fiscal Lottery during the regime of President Guillermo Endara in 1992. The revival of the program currently borrows from its origins but alters the framework to align with modern fiscal processes and technology.
Panama is joined on a list of at least 14 Ibero-American countries that have implemented such programs, including Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Portugal, and Uruguay. The shared objective in these programs is to obtain voluntary compliance and increase tax collection at a low cost of enforcement.
In sum, Panama’s revival of the Fiscal Lottery is a strategic move to encourage tax collection, make fiscal education easier, and aid state income in an ancillary and open manner.
Source: YogoNet
