Recently, the Municipality of Panama issued a new policy announcing that owners of electric vehicles in the Panama District will be exempt from transportation taxes for the first five years of ownership.
Ana Polo, director of fees at the municipal treasury, explained that this measure is part of the Green License Program, which aims to improve environmental standards in the province of Panama.
“The green license plates have already been issued and vehicle owners need only go to the municipal office to complete the registration of their vehicles to benefit from the tax exemption.” Polo elaborated.
She further revealed that the relevant authorities are currently updating and refining their statistics and expect to complete the detailed registration of this new batch of vehicles in the coming weeks, as well as checking the data with the companies selling the electric vehicles.
According to data provided by the State Secretariat for Energy (SNE), sales of electric vehicles reached 371 units in 2023, a growth rate of more than 50 percent compared to 160 units in 2022.
In addition, sales figures for the first four months of 2024 show strong growth in the electric vehicle market:
- January: 24 units
- February: 37 units
- March: 38 units
- April: 45 units
Juan Navarro, president of the Panamanian Energy Chamber of Commerce, said on TVN News that the starting price for these electric cars is $10,000 with no ceiling. There is reasonable pricing for the various brands on the market, while local banks offer financing for the purchase of these vehicles, further lowering the barrier to purchase.
Regarding how the electric vehicles work, Navarro explains, “Instead of relying on gasoline, these vehicles are powered by rechargeable batteries that have a range of up to about 300 kilometers, which is equivalent to the distance from the capital to Santiago de Veraguas.” Users can charge them at home or anywhere by installing a charger, or even by utilizing solar panels.
In terms of maintenance, Navarro noted that EVs cost about 50 percent less to maintain than traditional gasoline vehicles and are simpler. Since electric cars have no internal combustion engine components, only the battery and conventional parts, such as tires and shock absorbers, need to be maintained, and the warranty on the battery is usually up to 10 years.
He also emphasized that Panama is ready for these environmentally friendly and economical vehicles, with more than 170 charging stations for electric vehicles already in place throughout the country.
