Panama's National Assembly is considering Draft Bill No. 90 of 2022, which would introduce a new tax on fossil fuel powered vehicles with the aim of shifting demand to electric vehicles. The tax would be based on the purchase price of a vehicle, beginning with a rate of 1.5% on vehicles with a price of up to USD 49,470, 2.5% on vehicles over USD 49,470 up to USD 111,305, and 3.5% on vehicles over USD 111,305. As proposed, the tax would apply from 2027.