# Panama tax reform and construction sector stimulus > Live situation record from CLSTR: https://clstr.news/situations/panama-tax-reform-and-construction-sector-stimulus > Updated: 2026-08-12T23:22:46.000Z. Sources: 4. Developments: 2. Following a tax fraud scandal involving the Directorate General of Revenues (DGI), the Panamanian government has moved toward legislative reform. Minister of Economy and Finance Felipe Chapman submitted a bill to the National Assembly to reform the Real Estate Transfer Tax (ITBI). The proposal aims to stimulate the construction sector, encourage investment, and promote formal employment. The plan includes partial tax exemptions on the first sale of certain new homes, specifically exempting the first 120,000 balboas of the tax base for qualifying sales. For properties valued between 120,000 and 200,000 balboas, a preferential scale would apply to the excess, while properties exceeding 200,000 balboas would maintain the initial exemption with the remainder subject to general tax regimes. The Panamanian Chamber of Construction (CAPAC) supports the initiative, which originated from a National Technical Table intended to address industry barriers and reduce bureaucracy. ## Timeline ### 2026-08-12: Panama proposes tax reforms to stimulate construction and housing Panama's government has proposed a bill to reform the Real Estate Transfer Tax, offering exemptions on the first 120,000 balboas of new home sales to boost construction and employment. 4 sources. https://clstr.news/cluster/panama-construction-sector-backs-legislative-plan-to-boost-industry ### 2026-07-14: Panama DGI tax fraud scandal spurs reform push Panama’s DGI tax fraud, causing an estimated $40 million loss, led to 16 arrests and sparked calls for an autonomous tax agency and tighter controls. 2 sources. https://clstr.news/cluster/panama-dgi-tax-fraud-scandal-spurs-reform-push --- Cite as: Panama tax reform and construction sector stimulus. CLSTR, https://clstr.news/situations/panama-tax-reform-and-construction-sector-stimulus